Cvent Announces First Quarter 2023 Financial Results
Revenue Increases
TYSONS, Va.--(BUSINESS WIRE)-- Cvent Holding Corp. (“Cvent”) (Nasdaq: CVT), an industry-leading meetings, events and hospitality technology provider, today announced financial results for the first quarter ended March 31, 2023.
First Quarter 2023 Financial Highlights
Revenue
-
Total revenue was
$166.2 million 21.0% from the comparable period in 2022. -
Event Cloud revenue was
$114.7 million 20.7% from the comparable period in 2022. -
Hospitality Cloud revenue was
$51.5 million 21.6% from the comparable period in 2022.
Net Loss and Adjusted EBITDA
-
Net loss was
$32.6 million $31.4 million -
Adjusted EBITDA (defined below) was
$32.4 million $12.8 million -
Adjusted EBITDA margin (defined below) was
19.5% for the first quarter of 2023 compared to9.3% in the comparable period in 2022.
Cash, Cash Equivalents and Short-Term Investments
-
Cash, cash equivalents and short-term investments as of March 31, 2023 totaled
$156.1 million $140.0 million
Adjusted EBITDA and Adjusted EBITDA margin are a non-GAAP financial measure. Definitions of Adjusted EBITDA and Adjusted EBITDA margin and a reconciliation of those measures to their most directly comparable measures in accordance with GAAP are set forth below.
Pending Merger
On March 14, 2023, Cvent entered into a definitive agreement pursuant to which it agreed to be acquired by an affiliate of private equity funds managed by
Conference Call Information
Given Cvent’s pending acquisition by
About Cvent
Cvent Holding Corp. (Nasdaq: CVT) is a leading meetings, events, and hospitality technology provider with more than 4,800 employees and more than 21,000 customers worldwide as of March 31, 2023. Founded in 1999, the company delivers a comprehensive event marketing and management platform and offers a global marketplace where event professionals collaborate with venues to create engaging, impactful experiences. Cvent is headquartered in Tysons,
Non-GAAP Financial Measures
This earnings press release uses and discusses the following financial measures not presented in accordance with generally accepted accounting principles in the
We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Cvent’s financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, and to compare our performance to that of prior periods for trend analyses. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to more thoroughly analyze key financial metrics used to make operational decisions. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors.
We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Cvent’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business.
Cvent excludes or adjusts for one or more of the following items from these non-GAAP financial measures:
Interest expense. Cvent excludes this expense from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA.
Other income, net. Cvent excludes this item, which is comprised primarily of foreign exchange gains/(losses) and state tax settlements, from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA.
Provision for income taxes. Cvent excludes this item from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA.
Amortization of deferred financing costs and debt discount. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA.
Intangible asset amortization. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit and Adjusted EBITDA.
Amortization of software development costs. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit and Adjusted EBITDA.
Stock-based compensation expense. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA.
Cost related to acquisitions. Cost related to acquisitions is comprised of the value of contingent payments included in compensation expense which relate to the potential cash payment to certain employees of acquired companies whose right to receive such payment is forfeited if they terminate their employment prior to the required service period. As the contingent payments are subject to continued employment, GAAP requires that these payments be accounted for as compensation expense and such expense is subject to revaluation. Additionally, cost related to acquisitions includes expenses related to performing due diligence, valuation, earnouts or other acquisition-related activities, including costs associated with the proposed merger with
Restructuring expenses. Cvent excludes this expense, which is comprised of expenses associated with severance to terminated employees of acquired entities, retention bonuses to employees retained from acquired entities, costs to discontinue use of a back-office system and closing of certain office spaces, primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA.
Other items. Cvent excludes this item, which is comprised of certain expenses associated with prosecuting a trade secret misappropriation claim and credit facility fees, net of the gain from government subsidies related to the global COVID-19 pandemic, primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA.
Loss on extinguishment of debt. Cvent excludes this expense from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA.
Purchases of Property and Equipment. This item is customarily included as a reduction to net cash provided by operating activities in the calculation of free cash flow. This item is reflected in Adjusted Free Cash Flow.
Capitalized Software Development Costs. This item is customarily included as a reduction to net cash provided by operating activities in the calculation of free cash flow. This item is reflected in Adjusted Free Cash Flow.
Change in Fees Payable to Customers. Cvent excludes the change in this balance sheet item primarily because it is not considered a part of ongoing net cash provided by operating activities when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted Free Cash Flow.
Interest Paid. Cvent excludes these cash payments primarily because it is not considered a part of ongoing net cash provided by operating activities when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted Free Cash Flow.
Forward-Looking Statements
Certain statements in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, and you can often identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “target,” “projects,” “forecasts,” “shall,” “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this release are based upon Cvent’s historical performance and on its current plans, operating budgets, estimates and expectations in light of information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks, uncertainties, assumptions and factors that could cause actual results to differ materially from those anticipated, including, but not limited to: the risk that trends stated or implied by this release cannot or will not be sustained at the current pace or may fluctuate from current expectations, including trends and expectations related to revenue, revenue growth, net loss, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow margin, gross profit, gross margin, expenses, deferred revenue, interest expense, the demand for events and meetings, the return to in-person events, demand for advertising and software solutions, and demand for an integrated platform; the impact of current global events and macroeconomic conditions on customer’s demand for our products and services, Cvent’s operations, financial results and on Cvent’s virtual, hybrid and in-person offerings; Cvent’s ability to retain, engage, and upsell current customers and attract and retain new customers; Cvent’s ability to maintain and expand relationships with hotels and venues; the competitiveness of the market in which Cvent operates and Cvent’s ability to maintain and increase its market position; Cvent’s ability to attract and retain key employees, including its senior management team; the impact of a disruption of Cvent’s operations, infrastructure or systems, or disruption of the operations, infrastructure or systems of the third parties on which Cvent relies; Cvent’s ability to manage its costs and growth effectively; Cvent’s ability to develop, introduce and market new and enhanced versions of its solutions to meet customer needs and expectations; the risk that the industry does not get back to a normalized state when and as expected; the risk that the proposed merger with
We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements as well as other cautionary statements that are made from time to time in our other SEC filings and public communications, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, including in the “Risk Factors” section of those filings. Actual results may differ materially. Investors should evaluate all forward-looking statements in the context of these risks and uncertainties.
The forward-looking statements included herein are made only as of the date hereof, based on current estimates, expectations, observations and trends. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law.
Additional Information and Where to Find It
This communication is being made in respect of the proposed transaction involving Cvent and
BEFORE MAKING ANY DECISION, CVENT STOCKHOLDERS ARE URGED TO CAREFULLY READ THE DEFINITIVE PROXY STATEMENT (INCLUDING ANY AMENDMENTS OR SUPPLEMENTS THERETO) AND ANY OTHER RELEVANT DOCUMENTS FILED OR TO BE FILED WITH THE SEC IN CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY REFERENCE INTO THE DEFINITIVE PROXY STATEMENT BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION.
Any vote in respect of resolutions to be proposed at Cvent’s special meeting of stockholders to approve the proposed transaction or other responses in relation to the proposed transaction should be made only on the basis of the information contained in the Definitive Proxy Statement. You may obtain a free copy of the Definitive Proxy Statement and other related documents filed by Cvent with the SEC at the website maintained by the SEC at www.sec.gov or by accessing the Investor Relations section of Cvent’s website at https://www.cvent.com.
No Offer or Solicitation
This communication is for information purposes only and is not intended to and does not constitute, or form part of, an offer, invitation or the solicitation of an offer or invitation to purchase, otherwise acquire, subscribe for, sell or otherwise dispose of any securities, or the solicitation of any vote or approval in any jurisdiction, pursuant to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
Participants in the Solicitation
Cvent and certain of its directors and executive officers may be deemed to be participants in the solicitation of proxies from Cvent’s stockholders in connection with the proposed transaction. Information regarding Cvent’s directors and executive officers, including a description of their respective direct or indirect interests, by security holdings or otherwise, is included in the Definitive Proxy Statement and will be included in Cvent’s other filings with the SEC made subsequent to the date of the Definitive Proxy Statement. To the extent holdings of Cvent’s securities by such directors or officers have changed or will change since the amounts printed as of a date disclosed in the Definitive Proxy Statement, such changes have been or will be reflected on Initial Statements of Beneficial Ownership on Form 3, Statements of Changes in Beneficial Ownership on Form 4 or other ownership reports filed with the SEC. Additional information regarding the identity of potential participants, and their direct or indirect interests, by security holdings or otherwise, is set forth in the Definitive Proxy Statement and will be set forth in other materials to be filed with the SEC in connection with the special meeting of Cvent’s stockholders. These documents can be obtained free of charge from the SEC’s website at www.sec.gov or by accessing the Investor Relations section of Cvent’s website at https://www.cvent.com.
CVENT HOLDING CORP.
CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) |
||||||||
|
|
|
|
|
||||
|
|
March 31, 2023 |
|
December 31, 2022 |
||||
|
|
(unaudited) |
|
|
||||
Assets |
|
|
||||||
Current assets: |
|
|
||||||
Cash and cash equivalents |
$ |
102,220 |
|
|
$ |
99,108 |
|
|
Restricted cash |
|
2,535 |
|
|
|
815 |
|
|
Short-term investments |
|
53,872 |
|
|
|
40,925 |
|
|
Accounts receivable, net of allowance of |
|
97,018 |
|
|
|
120,362 |
|
|
Capitalized commission, net |
|
27,473 |
|
|
|
26,685 |
|
|
Prepaid expenses and other current assets |
|
24,759 |
|
|
|
17,819 |
|
|
Total current assets |
|
307,877 |
|
|
|
305,714 |
|
|
Property and equipment, net |
|
14,577 |
|
|
|
15,250 |
|
|
Capitalized software development costs, net |
|
92,759 |
|
|
|
96,959 |
|
|
Intangible assets, net |
|
161,076 |
|
|
|
172,781 |
|
|
Goodwill |
|
1,620,270 |
|
|
|
1,620,312 |
|
|
Operating lease-right-of-use assets |
|
28,453 |
|
|
|
20,398 |
|
|
Capitalized commission, non-current, net |
|
23,828 |
|
|
|
23,477 |
|
|
Deferred tax assets, non-current |
|
2,440 |
|
|
|
2,425 |
|
|
Other assets, non-current, net |
|
5,493 |
|
|
|
8,617 |
|
|
Total assets |
$ |
2,256,773 |
|
|
$ |
2,265,933 |
|
|
Liabilities and stockholders’ equity |
|
|
|
|||||
Current liabilities: |
|
|
|
|||||
Current portion of long-term debt |
$ |
- |
|
|
$ |
- |
|
|
Accounts payable |
|
2,804 |
|
|
|
2,147 |
|
|
Accrued expenses and other current liabilities |
|
88,993 |
|
|
|
82,249 |
|
|
Fees payable to customers |
|
63,589 |
|
|
|
38,379 |
|
|
Operating lease liabilities, current |
|
11,121 |
|
|
|
11,070 |
|
|
Deferred revenue |
|
302,216 |
|
|
|
267,882 |
|
|
Total current liabilities |
|
468,723 |
|
|
|
401,727 |
|
|
Deferred tax liabilities, non-current |
|
18,126 |
|
|
|
18,103 |
|
|
Long-term debt, net |
|
138,000 |
|
|
|
208,000 |
|
|
Operating lease liabilities, non-current |
|
26,790 |
|
|
|
19,712 |
|
|
Other liabilities, non-current |
|
6,413 |
|
|
|
7,526 |
|
|
Total liabilities |
|
658,052 |
|
|
|
655,068 |
|
|
Commitments and contingencies (Note 12) |
|
|
|
|||||
Stockholders’ equity: |
|
|
|
|||||
Common stock, |
|
49 |
|
|
|
49 |
|
|
Additional paid-in capital |
|
2,591,042 |
|
|
|
2,571,424 |
|
|
Accumulated other comprehensive loss |
|
(7,850 |
) |
|
|
(8,731 |
) |
|
Accumulated deficit |
|
(984,520 |
) |
|
|
(951,877 |
) |
|
Total stockholders’ equity |
|
1,598,721 |
|
|
|
1,610,865 |
|
|
Total liabilities and stockholders’ equity |
$ |
2,256,773 |
|
|
$ |
2,265,933 |
|
|
CVENT HOLDING CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share data) (unaudited) |
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|
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Three Months Ended March 31, |
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|
|
2023 |
|
2022 |
||||
Revenue |
$ |
166,205 |
|
$ |
137,356 |
|
||
Cost of revenue |
|
60,691 |
|
|
56,200 |
|
||
Gross profit |
|
105,514 |
|
|
81,156 |
|
||
Operating expenses: |
|
|
||||||
Sales and marketing |
|
44,960 |
|
|
40,091 |
|
||
Research and development |
|
35,973 |
|
|
31,406 |
|
||
General and administrative |
|
39,768 |
|
|
24,951 |
|
||
Intangible asset amortization, exclusive of amounts included in cost of revenue |
|
11,713 |
|
|
12,154 |
|
||
Total operating expenses |
|
132,414 |
|
|
108,602 |
|
||
Loss from operations |
|
(26,900 |
) |
|
(27,446 |
) |
||
Interest expense |
|
(2,647 |
) |
|
(2,592 |
) |
||
Amortization of deferred financing costs and debt discount |
|
(158 |
) |
|
(320 |
) |
||
Other income, net |
|
1,169 |
|
|
260 |
|
||
Loss before income taxes |
|
(28,536 |
) |
|
(30,098 |
) |
||
Provision for income taxes |
|
4,107 |
|
|
1,291 |
|
||
Net loss |
$ |
(32,643 |
) |
$ |
(31,389 |
) |
||
Other comprehensive income: |
|
|
||||||
Other comprehensive income |
|
881 |
|
|
131 |
|
||
Comprehensive loss |
$ |
(31,762 |
) |
$ |
(31,258 |
) |
||
Basic and diluted net loss per common share |
$ |
(0.07 |
) |
$ |
(0.07 |
) |
||
Basic and diluted weighted-average common shares outstanding |
|
488,983,183 |
|
|
481,144,118 |
|
||
CVENT HOLDING CORP.
CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) |
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Three Months Ended March 31, |
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2023 |
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2022 |
||||
Operating activities: |
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|
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Net loss |
$ |
(32,643 |
) |
$ |
(31,389 |
) |
||
Adjustments to reconcile net loss to net cash provided by operating activities: |
|
|
||||||
Depreciation and amortization |
|
30,582 |
|
|
30,187 |
|
||
Amortization of the right-of-use assets |
|
2,231 |
|
|
2,077 |
|
||
Allowance for expected credit losses, net |
|
(462 |
) |
|
279 |
|
||
Amortization of deferred financing costs and debt discount |
|
158 |
|
|
320 |
|
||
Amortization of capitalized commission |
|
8,924 |
|
|
7,948 |
|
||
Unrealized foreign currency transaction (gain)/loss |
|
(1,020 |
) |
|
287 |
|
||
Stock-based compensation |
|
14,556 |
|
|
9,768 |
|
||
Change in deferred taxes |
|
7 |
|
|
2 |
|
||
Change in operating assets and liabilities |
|
|
||||||
Accounts receivable |
|
23,932 |
|
|
18,968 |
|
||
Prepaid expenses and other assets |
|
(17,840 |
) |
|
(7,021 |
) |
||
Capitalized commission, net |
|
(13,700 |
) |
|
(13,581 |
) |
||
Accounts payable, accrued expenses and other liabilities |
|
47,168 |
|
|
16,783 |
|
||
Operating lease liability |
|
(3,158 |
) |
|
(2,864 |
) |
||
Deferred revenue |
|
33,790 |
|
|
48,160 |
|
||
Net cash provided by operating activities |
|
92,525 |
|
|
79,924 |
|
||
Investing activities: |
|
|
||||||
Purchase of property and equipment |
|
(2,356 |
) |
|
(1,375 |
) |
||
Capitalized software development costs |
|
(12,725 |
) |
|
(11,891 |
) |
||
Purchase of investments |
|
(56,051 |
) |
|
(21,238 |
) |
||
Maturities of investments |
|
46,127 |
|
|
16,824 |
|
||
Net cash used in investing activities |
|
(25,005 |
) |
|
(17,680 |
) |
||
Financing activities: |
|
|
||||||
Principal repayments of revolving credit facility |
|
(115,000 |
) |
|
— |
|
||
Proceeds from revolving credit facility |
|
45,000 |
|
|
— |
|
||
Proceeds from exercise of stock options |
|
5,127 |
|
|
510 |
|
||
Net cash (used in) provided by financing activities |
|
(64,873 |
) |
|
510 |
|
||
Effect of exchange rate changes on cash, cash equivalents and restricted cash |
|
2,185 |
|
|
(1,209 |
) |
||
Change in cash, cash equivalents, and restricted cash |
|
4,832 |
|
|
61,545 |
|
||
Cash, cash equivalents, and restricted cash, beginning of period |
|
99,923 |
|
|
126,629 |
|
||
Cash, cash equivalents, and restricted cash, end of period |
$ |
104,755 |
|
$ |
188,174 |
|
||
Supplemental cash flow information: |
|
|
||||||
Interest paid |
$ |
2,448 |
|
$ |
2,584 |
|
||
Income taxes paid |
$ |
455 |
|
$ |
1,743 |
|
||
Supplemental disclosure of non-cash investing and financing activities: |
|
|
||||||
Outstanding payments for purchase of property and equipment at period end |
$ |
153 |
|
$ |
382 |
|
||
Outstanding payments for capitalized software development costs at period end |
$ |
883 |
|
$ |
887 |
|
||
RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except share amounts and share counts) (unaudited) |
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Three Months Ended March 31, |
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|
2023 |
|
2022 |
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(in thousands) |
||||||
Non-GAAP Gross Profit: |
|
|
||||||
Gross Profit |
$ |
105,514 |
|
$ |
81,156 |
|
||
Adjustments |
|
|
||||||
Depreciation |
|
316 |
|
|
542 |
|
||
Amortization of software development costs |
|
17,008 |
|
|
15,961 |
|
||
Stock-based compensation expense |
|
1,231 |
|
|
590 |
|
||
Restructuring expense |
|
- |
|
|
8 |
|
||
Other items |
|
- |
|
|
(98 |
) |
||
Non-GAAP Gross Profit |
$ |
124,069 |
|
$ |
98,159 |
|
||
|
|
|
||||||
Gross Margin: |
|
|
||||||
Revenue |
$ |
166,205 |
|
$ |
137,356 |
|
||
Gross Margin |
|
63.5 |
% |
|
59.1 |
% |
||
Non-GAAP Gross Margin |
|
74.6 |
% |
|
71.5 |
% |
||
|
Three Months Ended March 31, |
|||||||
|
2023 |
|
2022 |
|||||
|
(in thousands) |
|||||||
Non-GAAP Sales and Marketing Expenses: |
|
|
||||||
Sales and marketing |
$ |
44,960 |
|
|
$ |
40,091 |
|
|
Adjustments |
|
|
|
|||||
Depreciation |
|
(176 |
) |
|
|
(173 |
) |
|
Stock-based compensation expense |
|
(4,938 |
) |
|
|
(2,980 |
) |
|
Restructuring expense |
|
(7 |
) |
|
|
(67 |
) |
|
Cost related to acquisitions |
|
- |
|
|
|
(10 |
) |
|
Other items |
|
- |
|
|
|
52 |
|
|
Non-GAAP Sales and Marketing Expenses |
$ |
39,839 |
|
|
$ |
36,913 |
|
|
|
|
|
|
|||||
Sales and Marketing Expenses as a Percent of Revenue: |
|
|
|
|||||
Revenue |
$ |
166,205 |
|
|
$ |
137,356 |
|
|
Sales and marketing expenses |
|
27.1 |
% |
|
|
29.2 |
% |
|
Non-GAAP sales and marketing expenses |
|
24.0 |
% |
|
|
26.9 |
% |
|
|
Three Months Ended March 31, |
|||||||
|
2023 |
|
2022 |
|||||
|
(in thousands) |
|||||||
Non-GAAP Research and Development Expenses: |
|
|
||||||
Research and development |
$ |
35,973 |
|
|
$ |
31,406 |
|
|
Adjustments |
|
|
|
|||||
Depreciation |
|
(207 |
) |
|
|
(226 |
) |
|
Stock-based compensation expense |
|
(3,829 |
) |
|
|
(2,588 |
) |
|
Restructuring expense |
|
(15 |
) |
|
|
27 |
|
|
Other items |
|
- |
|
|
|
360 |
|
|
Non-GAAP Research and Development Expenses |
$ |
31,922 |
|
|
$ |
28,979 |
|
|
|
|
|
|
|||||
Research and Development Expenses as a Percent of Revenue: |
|
|
|
|||||
Revenue |
$ |
166,205 |
|
|
$ |
137,356 |
|
|
Research and development expenses |
|
21.6 |
% |
|
|
22.9 |
% |
|
Non-GAAP research and development expenses |
|
19.2 |
% |
|
|
21.1 |
% |
|
|
Three Months Ended March 31, |
|||||||
|
2023 |
|
2022 |
|||||
|
(in thousands) |
|||||||
Non-GAAP General and Administrative Expenses: |
|
|
||||||
General and administrative |
$ |
39,768 |
|
|
$ |
24,951 |
|
|
Adjustments |
|
|
|
|||||
Depreciation |
|
(1,117 |
) |
|
|
(1,097 |
) |
|
Stock-based compensation expense |
|
(4,557 |
) |
|
|
(3,610 |
) |
|
Restructuring expense |
|
27 |
|
|
|
(229 |
) |
|
Cost related to acquisitions |
|
(13,585 |
) |
|
|
(177 |
) |
|
Other items |
|
(662 |
) |
|
|
(330 |
) |
|
Non-GAAP Research and Development Expenses |
$ |
19,874 |
|
|
$ |
19,508 |
|
|
|
|
|
|
|||||
General and Administrative Expenses as a Percent of Revenue: |
|
|
|
|||||
Revenue |
$ |
166,205 |
|
|
$ |
137,356 |
|
|
General and administrative expenses |
|
23.9 |
% |
|
|
18.2 |
% |
|
Non-GAAP general and administrative expenses |
|
12.0 |
% |
|
|
14.2 |
% |
|
|
Three Months Ended March 31, |
|||||||
|
2023 |
|
2022 |
|||||
|
(in thousands) |
|||||||
Adjusted EBITDA |
|
|
||||||
Net loss |
$ |
(32,643 |
) |
|
$ |
(31,389 |
) |
|
Adjustments |
|
|
|
|||||
Interest expense |
|
2,647 |
|
|
|
2,592 |
|
|
Amortization of deferred financing costs and debt discount |
|
158 |
|
|
|
320 |
|
|
Other income, net |
|
(1,169 |
) |
|
|
(260 |
) |
|
Provision for income taxes |
|
4,107 |
|
|
|
1,291 |
|
|
Depreciation |
|
1,816 |
|
|
|
2,038 |
|
|
Amortization of software development costs |
|
17,008 |
|
|
|
15,961 |
|
|
Intangible asset amortization |
|
11,713 |
|
|
|
12,154 |
|
|
Stock-based compensation expense |
|
14,556 |
|
|
|
9,768 |
|
|
Restructuring (income) expense |
|
(4 |
) |
|
|
277 |
|
|
Cost related to acquisitions |
|
13,585 |
|
|
|
187 |
|
|
Other items |
|
660 |
|
|
|
(180 |
) |
|
Adjusted EBITDA |
$ |
32,434 |
|
|
$ |
12,759 |
|
|
|
|
|
|
|||||
Adjusted EBITDA margin |
|
|
|
|||||
Revenue |
$ |
166,205 |
|
|
$ |
137,356 |
|
|
Net loss margin |
|
(19.6 |
)% |
|
|
(22.9 |
)% |
|
Adjusted EBITDA margin |
|
19.5 |
% |
|
|
9.3 |
% |
|
|
Three Months Ended March 31, |
|||||||
|
2023 |
|
2022 |
|||||
|
(in thousands) |
|||||||
Adjusted Free Cash Flow: |
|
|
|
|||||
Net cash provided by operating activities: |
$ |
92,525 |
|
|
$ |
79,924 |
|
|
Adjustments |
|
|
|
|||||
Purchase of property and equipment |
|
(2,356 |
) |
|
|
(1,375 |
) |
|
Capitalized software development costs |
|
(12,725 |
) |
|
|
(11,891 |
) |
|
Change in fees payable to customers |
|
(25,210 |
) |
|
|
(24,493 |
) |
|
Interest paid |
|
2,448 |
|
|
|
2,584 |
|
|
Adjusted Free Cash Flow |
$ |
54,682 |
|
|
$ |
44,749 |
|
|
|
|
|
|
|||||
Adjusted Free Cash Flow margin: |
|
|
|
|||||
Revenue |
$ |
166,205 |
|
|
$ |
137,356 |
|
|
Adjusted Free Cash Flow margin |
|
32.9 |
% |
|
|
32.6 |
% |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20230508005592/en/
Investor Contact
CventIR@icrinc.com
Media Contact
Erica Stoltenberg
estoltenberg@cvent.com
(571) 378-6240
Source: Cvent Holding Corp.
