NEWS7 November 2022

Momentive revenues rise despite workforce reduction

Financials News North America

US – Survey technology firm Momentive, owner of SurveyMonkey and GetFeedback, increased its revenue by 6% year-on-year in the third quarter of 2022 but confirmed plans for an 11% reduction in its workforce.

Business data

In its financial results for the third quarter of 2022, total revenue at Momentive was $121.4m, with sales-assisted channel revenue driving the increase, up 24% to $46.7m.

Self-serve channel revenue was $74.6m, a decrease of 3% year-on-year, while deferred revenue rose 8% to $213.5m.

Momentive also confirmed its October announcement that a restructuring plan for the company would reduce its headcount by approximately 11%, to be completed by the end of the current financial year.

The company added that it expected $4m to $5m in costs associated with the restructuring plan, mainly spent on employee severance, employee benefits and related facilitation costs.

The financial results also showed that Momentive had 897,500 paying users, up 2% from the same three-month period in 2021, with 92% of users on annual plans.

Average revenue per user was approximately $533, up 2% from approximately $524 in the third quarter of 2021.

Cash and cash equivalents totalled $193.1m and total debt was $185.3m as of 30th September 2022, according to Momentive.

A stock repurchase programme begun in February 2022 has repurchased $83.5m worth of shares, the business added, with the remaining share repurchase authorisation worth around $116.5m.

Zander Lurie, chief executive officer at Momentive, said: “In the third quarter, we remained focused on our long-term revenue growth and profitability targets while navigating an increasingly challenging macroeconomic environment.

“By reinvigorating our self-serve channel, expanding our existing customer relationships, and streamlining our go-to-market motion, we expect to drive continued operating leverage in 2023.”