Cvent Announces Third Quarter 2016 Financial Results

Cvent, Inc. (NYSE: CVT), a leading cloud-based enterprise event management company, today announced its financial results for the third quarter ended September 30, 2016.

Reggie Aggarwal, founder and chief executive officer of Cvent, said, "Third quarter revenue was $56.7 million, up 17.1% from a year ago and 22.3% after excluding the divested CrowdTorch business. We are extremely pleased with our operational performance as evidenced by our year-to-date free cash flow, which has grown to over $31 million. We continue to work towards closing the Vista Equity Partners acquisition and anticipate the transaction will be completed in the fourth quarter."

Third Quarter 2016 Financial Highlights

Revenue
  • Total revenue was $56.7 million, an increase of 17.1% from the comparable period in 2015.
  • Event Cloud revenue was $39.6 million, an increase of 17.2% from the comparable period in 2015.
  • Hospitality Cloud revenue was $17.1 million, an increase of 16.9% from the comparable period in 2015.

Operating (Loss) Income
  • GAAP operating loss was $(4.9) million, compared to income of $0.1 million in the comparable period in 2015.
  • Non-GAAP operating income was $4.8 million, compared to $5.1 million in the comparable period in 2015.

Net (Loss) Income
  • GAAP net loss was $(5.6) million, compared to income of $0.8 million for the comparable period in 2015. GAAP net loss per share was $(0.13), based on 42.4 million basic and diluted weighted average common shares outstanding, compared to income of $0.02 per diluted share for the comparable period in 2015, based on 43.5 million diluted weighted average common shares outstanding.
  • Non-GAAP net income was $4.2 million, compared to $5.9 million in the comparable period in 2015. Non-GAAP net income per diluted share was $0.09, based on 44.2 million diluted weighted average common shares outstanding, compared to $0.13 for the comparable period in 2015, based on 43.5 million diluted weighted average common shares outstanding.

Adjusted EBITDA
  • Adjusted EBITDA was $11.7 million, representing an adjusted EBITDA margin of 20.6%, compared to $10.6 million, or an adjusted EBITDA margin of 21.8% in the comparable period in 2015.

Recent Business Highlights
  • Signed new enterprise solutions customers across the US and internationally, including a Fortune 20 technology company, a Forbes 200 cosmetics company, and a Forbes 2000 social networking service, as well as expansions or renewals with the U.S. Department of the Treasury, 3M, Genentech, and a Fortune 50 insurance company.
  • Attracted new mid-market event management customers including Rutgers University Foundation, Sheetz, and SPS Commerce, and renewed or expanded agreements with American Institute of CPA's, American Petroleum Institute, and Marketo.
  • Experienced continued adoption of mobile app technology with new customers including Ferguson Enterprises and Hewlett Packard India Private Limited. Organizations that renewed or expanded relationships include Avnet, Mercedes-Benz Financial Services USA, and the National Science Teachers Association.
  • Added new Hospitality Cloud customers such as the Brussels Convention Bureau, Bangkok Marriott Marquis Queen's Park and W Las Vegas, and signed renewals or expansions with customers such as MGM Resorts International, Mohegan Sun, Rosewood Hotels and other top hotel chains.
  • On September 12, 2016, Cvent and the Vista Funds (the "parties") entered into a timing agreement with the U.S. Department of Justice under which the parties agreed (i) to substantially comply with the Second Request on a planned schedule and (ii) not to consummate the Merger until 60 days after the parties substantially comply with the Second Request. The parties substantially complied with the Second Request on September 23, 2016 and therefore cannot consummate the Merger before November 22, 2016. The parties expect the Merger to be completed in the fourth quarter of this year.
  • On October 17, 2016, Vista and Cvent mutually agreed to extend the termination date specified in the Merger Agreement until April 17, 2017. No other provisions of the Merger Agreement were otherwise amended or waived, and the Merger Agreement remains in full force and effect.

Business Outlook

Given Cvent's entry into an agreement and plan of merger with Vista on April 17, 2016, the Company will not provide outlook for its fourth quarter 2016 financial results. The Company's previously issued financial guidance for full year 2016 should no longer be relied upon.

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