Announces Workforce Reduction Plan
SAN MATEO, Calif.–(BUSINESS WIRE)–Momentive (NASDAQ: MNTV), the maker of SurveyMonkey, today reported fourth quarter and full year results for the period ended December 31, 2022.
“Our fourth quarter results illustrate our continued execution against our top priorities: driving meaningful operating leverage and positioning the company for more profitable growth,” said Zander Lurie, chief executive officer of Momentive. “Today, we are announcing plans to decrease costs and prioritize the products and pricing models that efficiently drive customer acquisition, retention, and expansion. While this is a difficult decision, we have conviction these steps will enable us to navigate a more challenging selling environment in the short-term, expand margins meaningfully in full year 2023, and deliver sustained, profitable growth over time.”
- Q4 2022 Key Results
- Total revenue was $122.4 million, an increase of 4% year-over-year. On a constant currency basis, revenue increased 7% year-over-year.
- Sales-assisted revenue was $49.3 million, an increase of 23% year-over-year. Sales-assisted revenue accounted for approximately 40% of total revenue, up from approximately 34% in Q4 2021. We ended the quarter with approximately 14,500 sales-assisted customers, up 23% from approximately 11,900 in Q4 2021.
- Self-serve revenue was $73.1 million, a decrease of 6% year-over-year.
- Deferred revenue was $207.4 million, an increase of 3% year-over-year. Remaining performance obligations were $238.8 million, an increase of 5% year-over-year.
- Paying users totaled approximately 887,400, an increase of 1% from approximately 879,600 in Q4 2021. Approximately 93% of our paying users were on annual plans, up from 91% a year ago.
- Average revenue per user was approximately $544, up 3% from approximately $530 in Q4 2021.
- GAAP operating margin was negative 3.7% and non-GAAP operating margin was 18.8%.
- GAAP net loss was $3.6 million and GAAP diluted net loss per share was $0.02. Non-GAAP net income was $20.7 million and non-GAAP diluted net income per share was $0.14.
- Net cash from operating activities was $8.2 million and free cash flow was $6.6 million.
Full Year 2022 Key Results
- Total revenue was $480.9 million, an increase of 8% year-over-year. On a constant currency basis, revenue increased 9% year-over-year.
- Sales-assisted revenue was $181.3 million, an increase of 27% year-over-year.
- Self-serve revenue was $299.6 million, approximately flat year-over-year.
- GAAP operating margin was negative 16.9% and non-GAAP operating margin was 7.9%.
- GAAP net loss was $89.9 million and GAAP diluted net loss per share was $0.61. Non-GAAP net income was $27.1 million and non-GAAP diluted net income per share was $0.18.
- Net cash provided by operating activities was $8.8 million and free cash flow was $0.1 million.
- Cash and cash equivalents totaled $202.8 million and total debt was $184.8 million for net cash of $18.0 million as of December 31, 2022.
- The company repurchased approximately 6.6 million shares of common stock for approximately $83.5 million. As of December 31, 2022, the company’s remaining share repurchase authorization was approximately $116.5 million.
Workforce Reduction
In a Form 8-K filed with the Securities and Exchange Commission today, Momentive also announced a plan designed to further improve its operating margin (the “Plan”). The Plan involves a reduction of the company’s workforce by approximately 14%.
We estimate that we will incur approximately $7.0 million to $9.0 million in charges related to employee severance, employee benefits, and related facilitation costs in connection with the Plan. We expect that the majority of these costs will be incurred and paid during the first quarter of 2023, and that the execution of the Plan, including cash payments, will be substantially complete by the end of the second quarter of 2023.
Potential position eliminations in each country are subject to local law and consultation requirements, which may extend this process beyond the first quarter of 2023 in certain countries. The charges that we expect to incur are subject to a number of assumptions, including local law requirements in various jurisdictions, and actual expenses may differ materially from the estimates disclosed above. The costs associated with the Plan will be included in our GAAP results but are expected to be excluded from our non-GAAP financial results.
Financial Outlook
For the first quarter of 2023, Momentive currently expects the following:
|
|
Q1 2023 |
|
Revenue Growth (year-over-year) |
0% to 2% |
|
Non-GAAP operating margin |
6% to 8% |
For the first quarter of 2023, the company expects basic and diluted weighted average shares outstanding to be approximately 149 million. The basic and diluted weighted average shares outstanding for the first quarter of 2023 do not include any forecasts for share repurchases after December 31, 2022.
Momentive is not providing full year 2023 revenue guidance due to the current macroeconomic environment. However, improving operating margin will remain a top priority in 2023 and the changes to the cost structure announced today put the company on a path to double non-GAAP operating margin in full year 2023 compared to full year 2022.
For a detailed explanation of the company’s non-GAAP measures, please refer to the appendix section of this press release. For more information on the company’s fourth quarter and full year 2022 financial results, please visit the Momentive investor relations website at investor.momentive.ai.
Conference Call Information
Momentive senior management will host a conference call today to discuss the company’s fourth quarter and full year 2022 financial results. This call is scheduled to begin at 2:00 pm PT / 5:00 pm ET and can be accessed by dialing (844) 200-6205 or (646) 904-5544 (ID: 687393). A telephonic replay of the conference call will be available until Thursday, February 23, 2023, and can be accessed by dialing (866) 813-9403 or (929) 458-6194 and entering the passcode 619341. An archived webcast of the Q4 earnings conference call will be accessible on investor.momentive.ai.
About Momentive
Momentive (NASDAQ: MNTV), maker of SurveyMonkey, collects and analyzes human sentiment at scale. Momentive products, including SurveyMonkey and Momentive brand and market insights solutions, equip decision-makers at 345,000 organizations worldwide with the insights they need to make decisions with speed and confidence. Millions of users rely on Momentive to fuel market insights, brand insights, employee experience, customer experience, and product experience. Ultimately, the company’s vision is to broaden the world’s perspective to shape the future of business. Learn more at momentive.ai.
|
MOMENTIVE GLOBAL INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) |
||||||||
|
(in thousands) |
|
December 31, |
|
|
December 31, |
|
||
|
Assets |
|
|
|
|
|
|
||
|
Current assets: |
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
$ |
202,816 |
|
|
$ |
305,525 |
|
|
Accounts receivable, net |
|
|
33,656 |
|
|
|
32,489 |
|
|
Deferred commissions, current |
|
|
9,775 |
|
|
|
7,945 |
|
|
Prepaid expenses and other current assets |
|
|
17,207 |
|
|
|
11,363 |
|
|
Total current assets |
|
|
263,454 |
|
|
|
357,322 |
|
|
Property and equipment, net |
|
|
1,006 |
|
|
|
5,442 |
|
|
Operating lease right-of-use assets |
|
|
32,252 |
|
|
|
52,232 |
|
|
Capitalized internal-use software, net |
|
|
29,595 |
|
|
|
28,158 |
|
|
Acquisition intangible assets, net |
|
|
5,156 |
|
|
|
10,773 |
|
|
Goodwill |
|
|
459,817 |
|
|
|
463,736 |
|
|
Deferred commissions, non-current |
|
|
14,307 |
|
|
|
13,200 |
|
|
Other assets |
|
|
4,568 |
|
|
|
9,061 |
|
|
Total assets |
|
$ |
810,155 |
|
|
$ |
939,924 |
|
|
Liabilities and stockholders’ equity |
|
|
|
|
|
|
||
|
Current liabilities: |
|
|
|
|
|
|
||
|
Accounts payable |
|
$ |
16,418 |
|
|
$ |
7,204 |
|
|
Accrued expenses and other current liabilities |
|
|
24,969 |
|
|
|
30,725 |
|
|
Accrued compensation |
|
|
31,893 |
|
|
|
45,873 |
|
|
Deferred revenue, current |
|
|
206,728 |
|
|
|
200,658 |
|
|
Operating lease liabilities, current |
|
|
8,046 |
|
|
|
9,587 |
|
|
Debt, current |
|
|
1,900 |
|
|
|
1,900 |
|
|
Total current liabilities |
|
|
289,954 |
|
|
|
295,947 |
|
|
Deferred revenue, non-current |
|
|
719 |
|
|
|
1,165 |
|
|
Deferred tax liabilities |
|
|
6,337 |
|
|
|
5,701 |
|
|
Debt, non-current |
|
|
182,916 |
|
|
|
209,816 |
|
|
Operating lease liabilities, non-current |
|
|
39,584 |
|
|
|
66,938 |
|
|
Other non-current liabilities |
|
|
3,885 |
|
|
|
5,883 |
|
|
Total liabilities |
|
|
523,395 |
|
|
|
585,450 |
|
|
Commitments and contingencies |
|
|
|
|
|
|
||
|
Stockholders’ equity: |
|
|
|
|
|
|
||
|
Preferred stock |
|
|
— |
|
|
|
— |
|
|
Common stock |
|
|
1 |
|
|
|
2 |
|
|
Additional paid-in capital |
|
|
997,621 |
|
|
|
971,604 |
|
|
Accumulated other comprehensive income (loss) |
|
|
(3,425 |
) |
|
|
414 |
|
|
Accumulated deficit |
|
|
(707,437 |
) |
|
|
(617,546 |
) |
|
Total stockholders’ equity |
|
|
286,760 |
|
|
|
354,474 |
|
|
Total liabilities and stockholders’ equity |
|
$ |
810,155 |
|
|
$ |
939,924 |
|
|
MOMENTIVE GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited) |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
(in thousands, except per share amounts) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
Revenue |
|
$ |
122,393 |
|
|
$ |
117,342 |
|
|
$ |
480,917 |
|
|
$ |
443,786 |
|
|
Cost of revenue (1)(2)(3) |
|
|
19,601 |
|
|
|
21,800 |
|
|
|
86,251 |
|
|
|
86,421 |
|
|
Gross profit |
|
|
102,792 |
|
|
|
95,542 |
|
|
|
394,666 |
|
|
|
357,365 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Research and development (1)(3) |
|
|
30,671 |
|
|
|
38,383 |
|
|
|
138,091 |
|
|
|
139,262 |
|
|
Sales and marketing (1)(2)(3) |
|
|
47,917 |
|
|
|
61,829 |
|
|
|
223,827 |
|
|
|
224,008 |
|
|
General and administrative (1)(3) |
|
|
24,139 |
|
|
|
34,709 |
|
|
|
107,522 |
|
|
|
106,667 |
|
|
Restructuring (1)(2) |
|
|
4,581 |
|
|
|
— |
|
|
|
6,563 |
|
|
|
— |
|
|
Total operating expenses |
|
|
107,308 |
|
|
|
134,921 |
|
|
|
476,003 |
|
|
|
469,937 |
|
|
Loss from operations |
|
|
(4,516 |
) |
|
|
(39,379 |
) |
|
|
(81,337 |
) |
|
|
(112,572 |
) |
|
Interest expense |
|
|
3,780 |
|
|
|
2,321 |
|
|
|
11,476 |
|
|
|
9,261 |
|
|
Other non-operating (income) expense, net |
|
|
(5,127 |
) |
|
|
195 |
|
|
|
(4,513 |
) |
|
|
934 |
|
|
Loss before income taxes |
|
|
(3,169 |
) |
|
|
(41,895 |
) |
|
|
(88,300 |
) |
|
|
(122,767 |
) |
|
Provision for (benefit from) income taxes |
|
|
464 |
|
|
|
(433 |
) |
|
|
1,591 |
|
|
|
482 |
|
|
Net loss |
|
$ |
(3,633 |
) |
|
$ |
(41,462 |
) |
|
$ |
(89,891 |
) |
|
$ |
(123,249 |
) |
|
Net loss per share, basic and diluted |
|
$ |
(0.02 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.84 |
) |
|
Weighted-average shares used in computing basic and diluted net loss per share |
|
|
148,043 |
|
|
|
149,368 |
|
|
|
148,476 |
|
|
|
147,045 |
|
|
(1) Includes stock-based compensation, net of amounts capitalized as follows: |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
(in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
Cost of revenue |
|
$ |
1,551 |
|
|
$ |
1,161 |
|
|
$ |
6,164 |
|
|
$ |
5,862 |
|
|
Research and development |
|
|
8,594 |
|
|
|
10,930 |
|
|
|
34,711 |
|
|
|
40,821 |
|
|
Sales and marketing |
|
|
4,563 |
|
|
|
5,721 |
|
|
|
22,860 |
|
|
|
23,585 |
|
|
General and administrative |
|
|
7,829 |
|
|
|
6,986 |
|
|
|
32,196 |
|
|
|
28,296 |
|
|
Restructuring |
|
|
— |
|
|
|
— |
|
|
|
2,761 |
|
|
|
— |
|
|
Stock-based compensation, net of amounts capitalized |
|
$ |
22,537 |
|
|
$ |
24,798 |
|
|
$ |
98,692 |
|
|
$ |
98,564 |
|
|
(2) Includes amortization of acquisition intangible assets as follows: |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
(in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
Cost of revenue |
|
$ |
— |
|
|
$ |
1,436 |
|
|
$ |
2,234 |
|
|
$ |
5,868 |
|
|
Sales and marketing |
|
|
370 |
|
|
|
989 |
|
|
|
2,916 |
|
|
|
4,274 |
|
|
Restructuring |
|
|
135 |
|
|
|
— |
|
|
|
450 |
|
|
|
— |
|
|
Amortization of acquisition intangible assets |
|
$ |
505 |
|
|
$ |
2,425 |
|
|
$ |
5,600 |
|
|
$ |
10,142 |
|
|
(3) Includes acquisition-related transaction costs as follows: |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
(in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
Cost of revenue |
|
$ |
— |
|
|
$ |
281 |
|
|
$ |
638 |
|
|
$ |
281 |
|
|
Research and development |
|
|
— |
|
|
|
1,337 |
|
|
|
3,363 |
|
|
|
1,337 |
|
|
Sales and marketing |
|
|
— |
|
|
|
1,246 |
|
|
|
3,090 |
|
|
|
1,246 |
|
|
General and administrative |
|
|
— |
|
|
|
9,546 |
|
|
|
4,809 |
|
|
|
9,957 |
|
|
Acquisition-related transaction costs |
|
$ |
— |
|
|
$ |
12,410 |
|
|
$ |
11,900 |
|
|
$ |
12,821 |
|
|
MOMENTIVE GLOBAL INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) |
||||||||
|
|
|
Year Ended December 31, |
|
|||||
|
(in thousands) |
|
2022 |
|
|
2021 |
|
||
|
Cash flows from operating activities |
|
|
|
|
|
|
||
|
Net loss |
|
$ |
(89,891 |
) |
|
$ |
(123,249 |
) |
|
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
|
|
|
|
||
|
Depreciation and amortization |
|
|
28,725 |
|
|
|
42,857 |
|
|
Non-cash leases expense |
|
|
10,693 |
|
|
|
13,057 |
|
|
Gain on lease modification |
|
|
(6,370 |
) |
|
|
— |
|
|
Stock-based compensation expense, net of amounts capitalized |
|
|
98,692 |
|
|
|
98,564 |
|
|
Deferred income taxes |
|
|
415 |
|
|
|
(331 |
) |
|
Bad debt expense |
|
|
2,756 |
|
|
|
1,248 |
|
|
Gain on sale of a private company investment |
|
|
(3,202 |
) |
|
|
— |
|
|
Impairment of long-lived assets |
|
|
838 |
|
|
|
503 |
|
|
Unrealized foreign currency (gains) losses, net and other |
|
|
1,652 |
|
|
|
1,379 |
|
|
Changes in assets and liabilities: |
|
|
|
|
|
|
||
|
Accounts receivable |
|
|
(4,500 |
) |
|
|
(9,817 |
) |
|
Prepaid expenses and other assets |
|
|
(11,728 |
) |
|
|
(14,231 |
) |
|
Accounts payable and accrued liabilities |
|
|
1,788 |
|
|
|
17,453 |
|
|
Accrued compensation |
|
|
(13,669 |
) |
|
|
14,044 |
|
|
Deferred revenue |
|
|
5,592 |
|
|
|
31,249 |
|
|
Operating lease liabilities |
|
|
(12,990 |
) |
|
|
(14,959 |
) |
|
Net cash provided by operating activities |
|
|
8,801 |
|
|
|
57,767 |
|
|
Cash flows from investing activities |
|
|
|
|
|
|
||
|
Purchases of property and equipment |
|
|
(449 |
) |
|
|
(735 |
) |
|
Capitalized internal-use software |
|
|
(8,205 |
) |
|
|
(8,443 |
) |
|
Proceeds from sale of property and equipment |
|
|
— |
|
|
|
170 |
|
|
Net cash used in investing activities |
|
|
(8,654 |
) |
|
|
(9,008 |
) |
|
Cash flows from financing activities |
|
|
|
|
|
|
||
|
Proceeds from stock option exercises |
|
|
2,827 |
|
|
|
27,953 |
|
|
Proceeds from employee stock purchase plan |
|
|
5,589 |
|
|
|
7,453 |
|
|
Payments to repurchase common stock |
|
|
(83,487 |
) |
|
|
— |
|
|
Repayment of debt |
|
|
(27,200 |
) |
|
|
(2,200 |
) |
|
Net cash provided by (used in) financing activities |
|
|
(102,271 |
) |
|
|
33,206 |
|
|
Effect of exchange rate changes on cash |
|
|
(739 |
) |
|
|
(458 |
) |
|
Net increase (decrease) in cash, cash equivalents and restricted cash |
|
|
(102,863 |
) |
|
|
81,507 |
|
|
Cash, cash equivalents and restricted cash at beginning of period |
|
|
306,121 |
|
|
|
224,614 |
|
|
Cash, cash equivalents and restricted cash at end of period |
|
$ |
203,258 |
|
|
$ |
306,121 |
|
|
Supplemental cash flow data: |
|
|
|
|
|
|
||
|
Interest paid for term debt |
|
$ |
10,668 |
|
|
$ |
8,620 |
|
|
Income taxes paid |
|
$ |
695 |
|
|
$ |
996 |
|
|
Non-cash investing and financing transactions: |
|
|
|
|
|
|
||
|
Stock compensation included in capitalized software costs |
|
$ |
2,395 |
|
|
$ |
2,213 |
|
|
Lease liabilities arising from obtaining right-of-use assets, net of terminations and modifications |
|
$ |
(13,620 |
) |
|
$ |
2,676 |
|
|
MOMENTIVE GLOBAL INC. SUPPLEMENTAL DISAGGREGATED REVENUE DATA (unaudited) |
|||||||||||||||||||||||||
|
Quarterly Disaggregated Revenue |
|||||||||||||||||||||||||
|
|
|
Three Months Ended |
|
||||||||||||||||||||||
|
(in thousands) |
|
Dec. 31, |
|
Sep. 30, |
|
Jun. 30, |
|
Mar. 31, |
|
Dec. 31, |
|
Sep. 30, |
|
Jun. 30, |
|
Mar. 31, |
|
||||||||
|
Self-serve revenue |
|
$ |
73,105 |
|
$ |
74,629 |
|
$ |
76,055 |
|
$ |
75,803 |
|
$ |
77,389 |
|
$ |
77,134 |
|
$ |
75,462 |
|
$ |
71,112 |
|
|
Sales-assisted revenue |
|
|
49,288 |
|
|
46,746 |
|
|
44,108 |
|
|
41,183 |
|
|
39,953 |
|
|
37,620 |
|
|
33,930 |
|
|
31,186 |
|
|
Revenue |
|
$ |
122,393 |
|
$ |
121,375 |
|
$ |
120,163 |
|
$ |
116,986 |
|
$ |
117,342 |
|
$ |
114,754 |
|
$ |
109,392 |
|
$ |
102,298 |
|
|
Annual Disaggregated Revenue |
||||||||||||
|
|
|
Year Ended December 31, |
|
|||||||||
|
(in thousands) |
|
2022 |
|
|
2021 |
|
|
2020 |
|
|||
|
Self-serve revenue |
|
$ |
299,592 |
|
|
$ |
301,097 |
|
|
$ |
267,703 |
|
|
Sales-assisted revenue |
|
|
181,325 |
|
|
|
142,689 |
|
|
|
107,907 |
|
|
Revenue |
|
$ |
480,917 |
|
|
$ |
443,786 |
|
|
$ |
375,610 |
|
Self-serve revenues are generated from products purchased independently through our website.
Sales-assisted revenues are generated from products sold to organizations through our sales team.
|
MOMENTIVE GLOBAL INC. RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) (1) |
||||||||||||||||
|
Reconciliation of GAAP to Non-GAAP (Loss) Income from operations |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
(in thousands, except percentages) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
GAAP Loss from operations |
|
$ |
(4,516 |
) |
|
$ |
(39,379 |
) |
|
$ |
(81,337 |
) |
|
$ |
(112,572 |
) |
|
GAAP Operating margin |
|
|
(4 |
)% |
|
|
(34 |
)% |
|
|
(17 |
)% |
|
|
(25 |
)% |
|
Stock-based compensation, net |
|
|
22,537 |
|
|
|
24,798 |
|
|
|
98,692 |
|
|
|
98,564 |
|
|
Amortization of acquisition intangible assets |
|
|
505 |
|
|
|
2,425 |
|
|
|
5,600 |
|
|
|
10,142 |
|
|
Acquisition-related transaction costs |
|
|
— |
|
|
|
12,410 |
|
|
|
11,900 |
|
|
|
12,821 |
|
|
Restructuring |
|
|
4,446 |
|
|
|
— |
|
|
|
3,352 |
|
|
|
— |
|
|
Non-GAAP Income from operations |
|
$ |
22,972 |
|
|
$ |
254 |
|
|
$ |
38,207 |
|
|
$ |
8,955 |
|
|
Non-GAAP Operating margin |
|
|
19 |
% |
|
|
— |
% |
|
|
8 |
% |
|
|
2 |
% |
|
Reconciliation of GAAP to Non-GAAP (Loss) Income and (Loss) Income per diluted share |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
(in thousands, except per share amounts) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
GAAP Net Loss |
|
$ |
(3,633 |
) |
|
$ |
(41,462 |
) |
|
$ |
(89,891 |
) |
|
$ |
(123,249 |
) |
|
GAAP Net Loss per diluted share |
|
$ |
(0.02 |
) |
|
$ |
(0.28 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.84 |
) |
|
Weighted-average shares used to compute GAAP net loss per diluted share |
|
|
148,043 |
|
|
|
149,368 |
|
|
|
148,476 |
|
|
|
147,045 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Stock-based compensation, net |
|
|
22,537 |
|
|
|
24,798 |
|
|
|
98,692 |
|
|
|
98,564 |
|
|
Amortization of acquisition intangible assets |
|
|
505 |
|
|
|
2,425 |
|
|
|
5,600 |
|
|
|
10,142 |
|
|
Acquisition-related transaction costs |
|
|
— |
|
|
|
12,410 |
|
|
|
11,900 |
|
|
|
12,821 |
|
|
Restructuring |
|
|
4,446 |
|
|
|
— |
|
|
|
3,352 |
|
|
|
— |
|
|
Gain on sale of a private company investment |
|
|
(3,202 |
) |
|
|
— |
|
|
|
(3,202 |
) |
|
|
— |
|
|
Income tax effect on Non-GAAP adjustments (2) |
|
|
57 |
|
|
|
290 |
|
|
|
650 |
|
|
|
799 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-GAAP Net (Loss) Income |
|
$ |
20,710 |
|
|
$ |
(1,539 |
) |
|
$ |
27,101 |
|
|
$ |
(923 |
) |
|
Non-GAAP Net (Loss) Income per diluted share |
|
$ |
0.14 |
|
|
$ |
(0.01 |
) |
|
$ |
0.18 |
|
|
$ |
(0.01 |
) |
|
Weighted-average shares used to compute Non-GAAP net (loss) income per diluted share |
|
|
148,132 |
|
|
|
149,368 |
|
|
|
148,909 |
|
|
|
147,045 |
|
|
(1) |
Please see Appendix A for explanation of non-GAAP measures used. |
|
(2) |
Due to the full valuation allowance on our US deferred tax assets, there were no tax effects associated with the Non-GAAP adjustments for acquisition-related transaction costs, restructuring costs and gain on sale of a private company investment. Non-GAAP adjustments pertain to the income tax effects of amortization of acquisition-related intangible assets and stock-based compensation, net. |
|
Calculation of Free Cash Flow |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
(in thousands) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
Net cash provided by (used in) operating activities |
|
$ |
8,150 |
|
|
$ |
(2,541 |
) |
|
$ |
8,801 |
|
|
$ |
57,767 |
|
|
Purchases of property and equipment |
|
|
— |
|
|
|
(348 |
) |
|
|
(449 |
) |
|
|
(735 |
) |
|
Capitalized internal-use software |
|
|
(1,526 |
) |
|
|
(1,993 |
) |
|
|
(8,205 |
) |
|
|
(8,443 |
) |
|
Free cash flow |
|
$ |
6,624 |
$ |
(4,882 |
) |
|
$ |
147 |
$ |
48,589 |
|
||||
|
MOMENTIVE GLOBAL INC. RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) (1) |
||||||||||||||||||||||
|
Calculation of Constant Currency Revenue and Constant Currency Revenue Growth Rate |
||||||||||||||||||||||
|
|
|
Three Months Ended |
|
|
|
|
|
Year Ended |
|
|
|
|
||||||||||
|
(in thousands, except percentages) |
|
2022 |
|
|
2021 |
|
|
Growth |
|
|
2022 |
|
|
2021 |
|
|
Growth |
|
||||
|
GAAP Revenue |
|
$ |
122,393 |
|
|
$ |
117,342 |
|
|
4 |
% |
|
$ |
480,917 |
|
|
$ |
443,786 |
|
|
8 |
% |
|
Effects of foreign currency exchange rates |
|
|
2,848 |
|
|
|
|
|
|
|
|
|
4,131 |
|
|
|
|
|
|
|
||
|
Constant currency revenue |
|
$ |
125,241 |
|
|
|
|
|
7 |
% |
|
$ |
485,048 |
|
|
|
|
|
9 |
% |
||
|
Supplemental GAAP and Non-GAAP Information |
||||||||||||||||
|
|
|
Three Months Ended |
|
|
Year Ended |
|
||||||||||
|
(in thousands, except percentages) |
|
2022 |
|
|
2021 |
|
|
2022 |
|
|
2021 |
|
||||
|
GAAP Gross profit |
|
$ |
102,792 |
|
|
$ |
95,542 |
|
|
$ |
394,666 |
|
|
$ |
357,365 |
|
|
GAAP Gross margin |
|
|
84 |
% |
|
|
81 |
% |
|
|
82 |
% |
|
|
81 |
% |
|
Stock-based compensation, net |
|
|
1,551 |
|
|
|
1,161 |
|
|
|
6,164 |
|
|
|
5,862 |
|
|
Amortization of acquisition intangible assets |
|
|
— |
|
|
|
1,436 |
|
|
|
2,234 |
|
|
|
5,868 |
|
|
Acquisition-related transaction costs |
|
|
— |
|
|
|
281 |
|
|
|
638 |
|
|
|
281 |
|
|
Non-GAAP Gross profit |
|
$ |
104,343 |
|
|
$ |
98,420 |
|
|
$ |
403,702 |
|
|
$ |
369,376 |
|
|
Non-GAAP Gross margin |
|
|
85 |
% |
|
|
84 |
% |
|
|
84 |
% |
|
|
83 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP Research and development |
|
$ |
30,671 |
|
|
$ |
38,383 |
|
|
$ |
138,091 |
|
|
$ |
139,262 |
|
|
GAAP Research and development margin |
|
|
25 |
% |
|
|
33 |
% |
|
|
29 |
% |
|
|
31 |
% |
|
Stock-based compensation, net |
|
|
8,594 |
|
|
|
10,930 |
|
|
|
34,711 |
|
|
|
40,821 |
|
|
Acquisition-related transaction costs |
|
|
— |
|
|
|
1,337 |
|
|
|
3,363 |
|
|
|
1,337 |
|
|
Non-GAAP Research and development |
|
$ |
22,077 |
|
|
$ |
26,116 |
|
|
$ |
100,017 |
|
|
$ |
97,104 |
|
|
Non-GAAP Research and development margin |
|
|
18 |
% |
|
|
22 |
% |
|
|
21 |
% |
|
|
22 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP Sales and marketing |
|
$ |
47,917 |
|
|
$ |
61,829 |
|
|
$ |
223,827 |
|
|
$ |
224,008 |
|
|
GAAP Sales and marketing margin |
|
|
39 |
% |
|
|
53 |
% |
|
|
47 |
% |
|
|
50 |
% |
|
Stock-based compensation, net |
|
|
4,563 |
|
|
|
5,721 |
|
|
|
22,860 |
|
|
|
23,585 |
|
|
Amortization of acquisition intangible assets |
|
|
370 |
|
|
|
989 |
|
|
|
2,916 |
|
|
|
4,274 |
|
|
Acquisition-related transaction costs |
|
|
— |
|
|
|
1,246 |
|
|
|
3,090 |
|
|
|
1,246 |
|
|
Non-GAAP Sales and marketing |
|
$ |
42,984 |
|
|
$ |
53,873 |
|
|
$ |
194,961 |
|
|
$ |
194,903 |
|
|
Non-GAAP Sales and marketing margin |
|
|
35 |
% |
|
|
46 |
% |
|
|
41 |
% |
|
|
44 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP General and administrative |
|
$ |
24,139 |
|
|
$ |
34,709 |
|
|
$ |
107,522 |
|
|
$ |
106,667 |
|
|
GAAP General and administrative margin |
|
|
20 |
% |
|
|
30 |
% |
|
|
22 |
% |
|
|
24 |
% |
|
Stock-based compensation, net |
|
|
7,829 |
|
|
|
6,986 |
|
|
|
32,196 |
|
|
|
28,296 |
|
|
Acquisition-related transaction costs |
|
|
— |
|
|
|
9,546 |
|
|
|
4,809 |
|
|
|
9,957 |
|
|
Non-GAAP General and administrative |
|
$ |
16,310 |
|
|
$ |
18,177 |
|
|
$ |
70,517 |
|
|
$ |
68,414 |
|
|
Non-GAAP General and administrative margin |
|
|
13 |
% |
|
|
15 |
% |
|
|
15 |
% |
|
|
15 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
GAAP Restructuring |
|
$ |
4,581 |
|
|
$ |
— |
|
|
$ |
6,563 |
|
|
$ |
— |
|
|
GAAP Restructuring margin |
|
|
4 |
% |
|
|
0 |
% |
|
|
1 |
% |
|
|
0 |
% |
|
Stock-based compensation, net |
|
|
— |
|
|
|
— |
|
|
|
2,761 |
|
|
|
— |
|
|
Amortization of acquisition intangible assets |
|
|
135 |
|
|
|
— |
|
|
|
450 |
|
|
|
— |
|
|
Other restructuring costs |
|
|
4,446 |
|
|
|
— |
|
|
|
3,352 |
|
|
|
— |
|
|
Non-GAAP Restructuring |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
Non-GAAP Restructuring margin |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
|
|
0 |
% |
|
(1) Please see Appendix A for explanation of non-GAAP measures used. |
||||||||||||||||
APPENDIX A
MOMENTIVE GLOBAL INC.
EXPLANATION OF NON-GAAP MEASURES
To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with US GAAP (“GAAP”), we use the following Non-GAAP financial measures: Non-GAAP (loss) income from operations, Non-GAAP operating margin, Non-GAAP net (loss) income, Non-GAAP net (loss) income per diluted share, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP research and development, Non-GAAP research and development margin, Non-GAAP sales and marketing, Non-GAAP sales and marketing margin, Non-GAAP general and administrative, Non-GAAP general and administrative margin, Non-GAAP restructuring, Non-GAAP restructuring margin, free cash flow, constant currency revenue, and constant currency revenue growth rate. Our definition for each Non-GAAP measure used is provided below, however, a limitation of Non-GAAP financial measures is that they do not have uniform definitions. Accordingly, our definitions for Non-GAAP measures used will likely differ from similarly titled Non-GAAP measures used by other companies thereby limiting comparability.
Non-GAAP (loss) income from operations, Non-GAAP operating margin: We define Non-GAAP (loss) income from operations as GAAP loss from operations excluding stock-based compensation, net, amortization of acquisition intangible assets, acquisition-related transaction costs, and restructuring. Non-GAAP operating margin is defined as Non-GAAP (loss) income from operations divided by revenue.
Non-GAAP net (loss) income, Non-GAAP net (loss) income per diluted share: We define Non-GAAP net (loss) income as GAAP net loss excluding stock-based compensation, net, amortization of acquisition intangible assets, acquisition-related transaction costs, restructuring, gain on sale of a private company investment, and including the income tax effect on Non-GAAP adjustments. Non-GAAP net (loss) income per diluted share is defined as Non-GAAP net (loss) income divided by the weighted-average shares outstanding.
Non-GAAP gross profit, Non-GAAP gross margin: We define Non-GAAP gross profit as GAAP gross profit excluding stock-based compensation, net, amortization of acquisition intangible assets, and acquisition-related transaction costs. Non-GAAP gross margin is defined as Non-GAAP gross profit divided by revenue.
Non-GAAP research and development, Non-GAAP research and development margin: We define Non-GAAP research and development as GAAP research and development excluding stock-based compensation, net and acquisition-related transaction costs.
Contacts
Investor Relations Contact:
Gary J. Fuges, CFA
investors@momentive.ai
Media Contact:
Katie Miserany
pr@momentive.ai
