SVMK Plunges as Revenue Estimate Trails Forecasts

SVMK predicted revenue of $99.5 million to $101.5 million for the first quarter, below the FactSet analyst consensus of $105 million.
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SVMK  (SVMK) - Get Report shares plummeted Friday as the survey software company’s first-quarter revenue estimate trailed forecasts and some analysts reacted negatively.

SVMK predicted revenue of $99.5 million to $101.5 million for the first quarter, below the FactSet analyst consensus of $105 million. Revenue surged 20% in the fourth quarter to $101 million, matching the analyst consensus. SVMK released its fourth-quarter results on Thursday after the close.

The stock recently traded at $23.09, down 15.98%. Even after that drop, it’s up 9% over the past three months amid investor excitement for software stocks.

As for the analysts, Stifel cut its price target to $26 from $28, keeping its hold rating. Some SVMK products have potential, but Stifel said it’s “looking for additional evidence of traction in 2021” to get more bullish on the stock, Bloomberg reports. The company’s results were mixed in the fourth quarter, Stifel said.

Credit Suisse has a neutral rating and a $27 price target. SVMK is “on the cusp of a product investment cycle,” which means lower profitability this year, Credit Suisse said, according to Bloomberg.

Berenberg has a buy rating and a $27 price target on SVMK. It was disappointed with the company's earnings outlook, which points to slowing growth in SVMK’s enterprise business, as “the pace of upsells faced headwinds stemming from a more difficult deal environment.” Berenberg still likes SVMK long-term, but sees limited gains for the medium term, Bloomberg reports.

Needham has a buy rating and lifted its price target to $29 from $27. “The re-set in expectations is a buying opportunity as self-serve revenues remain robust,” it said, according to Bloomberg.