Other recent big winners from the cloud software and/or big data space include DocuSign (DOCU, +84%), PluralSight (PS, +110%), Endava (DAVA, +49%), and i3 Verticals (IIIV, +75%). Along with pharmaceuticals and biotech, the big data space has been one of the hottest for the IPO market so far this year. As we have noted in prior reports, sentiment and timing are key to the IPO market due to the sensitivity of the asset class. In the case of SVMK, it is striking while the iron is still hot.
Its IPO was led by JP Morgan, Allen & Co, and BofA Merrill Lynch.
SVMK is a California-based provider of survey software products that are used by organizations to engage with their customers and employees. The company’s product, SurveyMonkey, was founded in 1999.
The company’s survey platform generates an average of more than 20 mln answered questions daily across 190 countries and territories. Organizations employ SVMK’s platform to collect Net Promoter Score data from customers, measure employee engagement, and conduct market research. More than 60 mln registered users have used the survey platform since inception. More than 16 mln users were active within the past year. The company has more than 600,000 paying users across more than 300,000 organizations. The company has paying users in 98% of the companies that make up Fortune 500.
The company notes that unlike “Big Data” platforms, which focus on the what, SVMK employs a People Powered Data approach, which captures the why. The company believes the People Powered Data approach provides more valuable insight.
SVMK’s survey platform uses SurveyMonkey Genius, a proprietary artificial intelligence-based survey creation assistant, which allows organization to build surveys by using insights extracted from SVMK’s database.
For the six months ended June 30, 2018, the company’s revenue grew 13.9% year/year to $121.19 mln. Gross margin weakened to 70.5% from 71.0%. The company reported a net loss of $27.18 mln for the first six months of 2018, up from a net loss of $19.10 mln reported one year ago. Loss per share widened to $0.27 from a loss of $0.19 for the first six months of 2017.
The company ended the first half of 2018 with 616,000 paying users, up 3.0% year/year. SVMK generated $22.03 mln from operating activities during the first half of 2018, up 49.2% year/year. The company does not plan to pay a dividend, but its Board of Directors could alter the dividend policy in the future.