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UBS Upgrades SurveyMonkey, Highlights 3 Keys To Success.

Byline: Jayson Derrick

Survey software company SVMK Inc (NASDAQ: SVMK) on Thursday reported another encouraging earnings print coupled with "robust" forward looking commentary, according to UBS.

The Analyst

UBS's Eric Sheridan upgraded SurveyMonkey from Neutral to Buy with a price target lifted from $18 to $24.

The Thesis

SurveyMonkey's second-quarter report was highlighted by a revenue beat driven by enterprise sales and strong performance in the Teams business, Sheridan wrote in a note. The company also showed an uptick in annual paying users who are on annual plans from 75% last year to 80%. Similarly, Enterprise sales as a percentage of total revenue rose from 16% last quarter to 20% in the second quarter.

Other positive takeaways from the quarter include enterprise sales customers increased by 60% last year to 4,777 and management discussed favorably its partnership with salesforce.com, inc. (NYSE:CRM) to include SurveyMonkey Audience and Usabilla.

SurveyMonkey's investment profile is raised as the company demonstrated three keys to future success, including: execution, product and partnerships. Succeeded on these three fronts should be viewed favorably by investors as it offers greater confidence in the company's ability to sustain a 20% or more growth rate over the coming five years.

Price Action

Shares of SurveyMonkey closed Friday higher by 17.9% at $19.47.

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Latest Ratings for SVMK

Date

Firm

Action

From

To

Aug 2019

Upgrades

Neutral

Buy

Mar 2019

Initiates Coverage On

Overweight

Oct 2018

Initiates Coverage On

Outperform

View More Analyst Ratings for SVMK

View the Latest Analyst Ratings

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Publication:Benzinga.com
Date:Aug 2, 2019
Words:531
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