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Cvent Holding (CVT)

Participants
Christian Jensen Partner and Co-Head, Private Investments at Dragoneer
Rajeev Aggarwal Founder, CEO, President & Director
William Newman CFO & SVP
Call transcript
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Operator

Greetings. Welcome to Cvent's Third Quarter 2021 Earnings Conference Call. [Operator Instructions]. Please note, the conference is being recorded. I would now like to turn the conference over to Amy Sy [ph], Investor Relations. you. Thank

begin. may You

Unidentified Company Representative

the thank Quarter joining we XXXX release close the and review announced today Cvent's press of the after Third Financial issued today. you afternoon, us for to in market Good Results, which

Partner Joining Private Co-Head Cvent's and Investments Christian Newman, Billy Aggarwal, of CEO; Reggie and and the Dragoneer; Cvent's are call Founder today Jensen, at CFO.

with or October XX, the statements. like that intention The was that whether result consent information, statements we States files the XXXX. Cvent than October fact Further, may this forward-looking call the are which registration Before today the Factors use update of revise retransmission, SEC on statements prior company's these other company's the that reproduction by is on or of constitute materially imposed heading profit violation are events Form these cause any or and prohibited statements of about of we Cvent any other statement a United from obligation the the from Dragoneer comments Cvent. by risks S-X make a laws. or and or results cumulative are II forward-looking without otherwise future statements, on you actual under law uncertainties other the declared statements. Corp. today and copyrighted otherwise. XX, forward-looking Any begin, we recording, make and to copyright These same remind to I disclaims subject as the discussed effective by Growth Risk new implementation XXXX, historical for not to are would and Opportunities vary and in of the plans during to risks filed results part in plans

take today's these note metrics The and includes company note, approved this financial regarding the certain discussion and transcript on measures financial related of GAAP the measures the operations. to available responsibility condition third by call are a business company's certain have to the financial results call performance, useful I'll is to party, the to Additionally, of management believes non-GAAP that, which transcript. information will reconciliation release. non-GAAP a of trends turn of Please we this to no the press publishing we for our we non-GAAP while accuracy over non-GAAP now relating financial company's historical in and A third Christian. measures investors financial to call and With provide measures. quarter

Christian Jensen

Private results. that Group. consistent announced Jensen, and quarter results be Investments of position drive Investment third XXXX and guidance given amidst differentiated recurring variant from the investors. I'm Cvent to top is even at as meetings spirit These they and to I'm to growth with market Christian our and Dragoneer Co-Head growth. deliver commitment revenue We our to our with The predictable EBITDA are continue the industry. their value. return executional look quality of they this team's initiatives, Partner the public shareholder with partnership double-digit to within transform And they pleased the healthy forward as pressure today earnings here expectations capability the event strong and a the as line company, the model to strong, differentiation, testament sustainable highly tech deliver Cvent's will in revenue ecosystem invest strong consistent strategic Cvent to the numerous reenter and events they entrepreneurial the of growth This a Delta exceeded management, quarter and margins. thesis

of in Reggie. XXXX. is over I'll fourth expected quarter still the the close Just update to turn on a merger quick that, transaction. With The to it

Rajeev Aggarwal

going I'm value we our of since this in growth and markets I discuss everyone. and a per I that XXXX was personally in hello, sticky to year a start I XX for our to as By opportunity full background, Outlook, minutes XX take few experiencing. is time tools were nonprofit corporate and events just lawyer. our story I notes. and first with Cvent a problem call while Christian, earnings creation. last organizing way of was continued Since our of XXXX, for Thanks, classic to that public business, solving were a a working My yellow started Excel founded

found any the pain that what and which I created point, And organizing entrepreneur good so events, which Cvent. is a I did aspirin, does, was

greater market customers SaaS grow plan, drive and platform our organize line their that So our helps and a software what engagement meetings Fundamentally, reducing revenue top while Cvent? their customers events. is We're our helps and we're We close $X.X ensuring project customers, have the OpEx And top for billion growth compliance. roughly foreseeable and revenue future. in XX,XXX over revenue forecasting for to currently XXXX. we and XX% line

to Attendee important Prior all-new Our websites, our that understand we to to flagship event And call solution the of built this pivoted Hub. But code in-person and pandemic, base manage COVID as team our virtual event on registration. management power we develop platform same for build used primarily virtual it's platform and tech is person X,XXX the when new that hit, an solution. the solution Virtual marketing we to nearly used our was fast online events. the power event focused event

used we nearly or virtual truly be platform hybrid. type that for it's can and have unified so And in-person, mode, delivery any of a whether any events

solutions, the employ an as many with years, maximize And their trying logos trend are to are technology acquired a offering as more meet of our accounts this unified virtual, in-person to by result next solutions cobbling needs the as our event companies engagement even competitors to Cvent and strength in continue needs user of which as or significant to to expect believe of events data We point the companies customer attendees. silos well hybrid experiences. and continue over embracing is We inconsistent the expand competitive existing new platform advantage we of wider variety customers program. the win together several their meet complex platform more that are over for

business. success events find the Cvent's tools our and of This venue pillar Hospitality their to customers Cloud another and business. event. for event, maximize they is the meetings their hoteliers It's basically our advantage and need competitive gives perfect hotel Bookings.com capture helps it and Another the for

network both power Cloud Now us Hospitality monetize and Cvent's the collective of ecosystem to and of Event create effects. Cloud the allows sides true

the let negative on slowed state impact Now and you of the past within meetings in had our our We're and thoughts few pandemic. of with down months variant current events. industry over the a still on has me the the impact our customers. also of Unfortunately, Delta has the return events clearly share in-person

This our the built first and more we're really the However, true is are meet. going to felt how impact we be virtual platform their our to makes The will to of a resiliency. become any return, silver growth nearly pandemic, our variant quarter of the shift handle for will that to believe of impact growth. future what because me lining matter is is events beneficiaries to even this QX of about future during excited more business' limited type events as the event it's in-person want great the because and our holds the this disproportionate hybrid 'XX accelerate time. mainstream the continue we'll our grown Delta pandemic attendees events able customers We subside, and grow. we've showed foundation since no

customers, number one There Now two, platform; the power four, what's both are one, people driving number we this towards and our number the growth? virtual product; strength planners brand. moving and reasons: that trust hoteliers; of the three, our future X relationships of with event our have and the

model that the business been So Delta able to still in been spite has it's variant. and proof perform for a point of the strategy our

We of to as expect this environment as strength. more overview the with to said, continue In I drivers we key third into event And business. believe modes. we'll performance increasing that this return to see strong I hope context, XXXX in our our growth continue we see delivery mix plays we going positive Cvent's an business-as-usual in of that discuss to I'm now helpful. is across trends the that a quarter. short, And

and to to X continues drivers about usage, existing going in growth. talk these to fuel the the context our win continue I'm product We their customers continue of new innovation each to quarter. logos, expand finally, of

new logos. on First,

point deal for and see pain contract understand organizations be they we a the They total solutions the are they of to see in-person processes to us a events. string are and do What platform access. total of us solve. $XXX,XXX Cvent And is with after using is that X-year of system of benefits one This with these initially TCV, transportation is want all to to manual their that this that's a the recently difficult virtual, single a team value, example Cvent day, speak still continue their to they're events. initial point systems. to momentum, using Every of we data have silo logo simply together record values type new internal and We still that stuck when in increasing. prospects, our state designed closed. implementing for a to event our looking signed agency with hybrid across contract working program, here and or solution their were will But for virtual event. is with for great A we struggling

one that contract think transportation space how side I state and would X-figure note, nearly our diverse us. sign a have big thought agency really would with many Now just This a shows just don't people is.

or fully TCV, story interactions. important citing in examples, for appreciate logo seamless opportunity of deal all signed of understand of of it's attendee-facing X is our Another a pharma to win. but robustness value, key company. a $X user to contract a X-year their us, a couple aspects the just a are public-traded and of platform division the These our of front within again new million, experience They end-to-end with total the a similar

and we all have us our industry our agnostic unknowns powerful to platform sign the organizations. this customers gives platform and the while deals second, and the confidence to that is provides pandemic. value with is both types truly First, multiyear of of flexible, still And

us for companies the in some total examples XXX,XXX. a of are for association of contract largest won X X-year smaller TCV a the And show here for a company in top or a an new just you deals contract logos of of contract Now $XXX,XXX. ACV, of An total of our $XXX,XXX. hundreds company a of quarter. TCV we $XXX,XXX. great signed that management to examples diversity are public X-year quarter. of expansion additional signed annual some a American provides signed course, A the management TCV nearly Japan global that larger X-year services for we A These that of travel the an racing IT marketing in QX deals future. for we in the signed X And value, have of contract also the closed opportunities in

to existing So the driver, move second now growth customers. expansion that's within and let's

space increase billion. in-person continue in events. fully in earlier, customers benefits the integrated We that see advantage. existing of spend to customers add module realize total clouds, the meaningful that they competitive continuing of value as have within are program, spend Similar $X.X events. hybrid platform hybrid a their platform, of of is white quarter all includes to that on-site realize existing help estimate types. overall And virtual, our seeing like which Across and what base we this the our and customer our across the because customers both I we events reinforce event just one back we're to our view, true said third Results increases we the opportunity modules in-person some from have their

deep a in quarter I So expansion customer go couple important base. the current to the think I that on opportunity the examples we to because understand want from it's enormous of have

that's global for company midsized our of been been customer in-person a have event. number they've a we years, So for financial and their using us advisory

think believe their $XXX,XXX. more sign there's ACV we this a account was they them. larger successful, pandemic, deal The for still tried of plenty a can pre-pandemic with comfortable And new multiyear events. growth. current their virtual we our X they eventually, so with we as event The increased event. signed from event larger ACV what With very to $XX,XXX for the And like, a virtual contract single initially programs of of solution they're for room look

retirement X-year to they to this XXXX. signaling over institute, to this account many only state of long-term in Another our They with company. company A internal more. spend, in year, our over this in is but customer XXXX, their a leveraged been our our flagship contract, examples, bring long XXX agency are customers. X signed $XXX,XXX XX,XXX within a meet opportunities and since XXXX relationship that these only conference. of grown resulted French their with multinational as -- education We're confidence employee of a association, consumer value platform Fortune their nearly a that's has public excited employees healthcare existing needs. not example But a they is a expansion a software there's customers only to company, services national association, financial technology the us $XXX,XXX runway their and and quarter. state type in in and confident expanded in provide for And expansion for a external their to did they Look, Cvent from events. third multinational a manage traditionally Cvent all over $XXX,XXX contract This increase value this coming platform

I've lot life. core it to no want touch while But It's Hospitality our Cloud, back Cloud to it starting of the hospitality Event see a talked the industry. is on to about we're now a decimated come platform. the pandemic I secret part Now the that because

platform meeting in key group manage is Our business, this and their overall and win helps recovery. and hotels

still During go a to saw pre-COVID But encouraging stages recovery. that of indicator quarter, of good also number observed we with hotels and really are the many what's hotels back the us, in a Texas early $XXX,XXX. we is which a spend Their customer Hospitality of since great A about that's XXXX seeing been basically of we the large come. a in the the was we're is Network. to Cvent ACV since Supplier hotel bounce-back XXXX, started example momentum in Cvent their Cloud

re-signed And their they cut were had So XXXX, they we $XX,XXX. spend with ACV to us impacted business. significantly QX, $XXX,XXX a over to Unfortunately, a for good-sized in And XX% client. COVID by in them agreement. their

they spend by increased XXXX, over spend. pre-pandemic more XX% their in So their than

advertised and in increase Another plan. They rates example Florida their South is operations floor and never exposure Cvent with the has interactive streamline wanted a luxury to that Cvent planners, residence and of wellness increase with resort property their close diagramming Cvent. using

going and see solutions. a partners includes the software We're business, and and hotel seeing events continue and became they both first-time the that contract, advertising return a believe ACV to stories signed that meetings are like So customer thrilled of and to positive $XX,XXX our we're we this.

driving third our and continued began a been process, We've a The extend to talking lot and to conference of lifeblood it production. platform its solution, the X.X% speakers presenters revenue, Cvent up quarterly planners driver turn guidance. versus Cvent broadcast-quality growth million remains audience. Now marketers we've leap year prior our and innovation. resulted let's At $XXX.X our and the major drivers virtual remote about video Studio, through discussed Cvent's announced proposition. All above August, a solid of growth and total in X we our develop in forward with driver, XX.X% year-over-year, Since stream launch for powerful product growth web-based Studio content new strength value live business. of bringing listing we the in to user I a these together their our just enables solution. our produce quarterly while public

a representing addition, $XX.X adjusted the than only revenue platform. drive interest making efficiently to We producing do outperformed while significant strong This reflects also EBITDA of to we business and XX.X%. our expected, margin million, growth, In more tailwinds on growth. originally investments this were industry operated we able also in not of

results our it discuss Newman, turn in to detail. I'll over future more to CFO, Now Billy our

William Newman

Reggie. Thanks,

characteristics, us. call, provide business perspective predictable of multiyear strong stated at multiyear take almost results with those Cvent's we few the along XX% with third a of customer are have, ratably may take XX% business software each you the as were These X quarter we contracts the from financial review Reggie contracts visibility. to year our and like -- be a through as to with excellent not moments -- contract which of XX% coming sign the highly from start subscription, over the current slightly make less Cvent's I'd recognized culture Before I who financial term. revenues for Over is deal than the familiar

third result, With that XX% a it million, quarter the to As the our revenue quarter committed. XX.X% in visibility was increase revenue have mind, been and that clear background has our start quarter through of year-over-year. financial discuss we I'll since quarter, Total entering third contractually then performance and quarter's already full in of you walking $XXX.X for an year. by guidance the fourth

average August. total X to return Virtual event previously Cloud COVID-impacted million X.X%. management by million, quarters to beat a growth and slowly a quarter When year-over-year revenue to new product in year-over-year momentum of XX is COVID an our declined strong an Cloud expect or we all quarter bookings million lingering our what return. to revenue our from due quarters, to XX.X% public, due by $XX.X from primarily hospitality guidance normally and $XX.X industry. were due than Event X.X% after beat virtual Hub, the customer would $X.X marks from year higher of strong Attendee to increase Hospitality we compared closer revenue, The This we was beat this we higher-than-expected to Within as on events and quarter held in-person on-site pressure conference to begin X%. core the revenue in our product, solutions ago, revenue

basis. of and otherwise non-GAAP operating to remainder relative references discussing all of signs our improved of it as In on of are the income unless expenses a rate declined when results XXXX significantly by the quarter recovery Cloud We noted, are decline second seeing Hospitality XX.X%. the the statement, in to the

the third release. GAAP our can in earnings directly most information metrics quarter on You comparable find press

Now each go as that note expense things. increases I reflect two the line, through throughout

services, percentage respond in $XXX.X virtual to second, expenses the product merchant million executing in temporarily costs planners gross on growth the general, of as beyond. become The revenue to and opportunity the investments a services services same growth, gross while compared period third revenue in related business; as investments our our revenue. of The quarter services decline the in events product. strong or should client in margin and return of margin drop merchant is in primarily related to indicative prior costs the in as was low to the profit increase of and in gross abnormally XXXX and fees interchange with our on-site the investment due COVID's First, cut employee a expenses, related to we're business we expenses events costs to regard and also as of and conference to quarter same virtual of is in in increased to last impact employee the XXXX revenue hosting of is virtual costs, higher non-GAAP year. result professional Non-GAAP are to year. massive card see professional fees we to to XX.X% card professional event behind inflated credit the XX.X% credit the compared business, costs making decline. non-GAAP more accustomed hosting increases starting percentage With The services for interchange

versus costs and events last what in-person client being this year. hybrid a the year's result just in conference call held of virtually, virtually event, increase the Finally, is we

of increases events. revenue Moving support expense or sales increased increase sales The income created Non-GAAP opportunity a the marketing to and and employee in were primarily as of the in non-GAAP expenses and services. employee marketing development primarily higher and non-GAAP XX.X% the million were compared higher to XX.X% by per and in of XX.X% prior average is higher services. term. marketing due contracted increase or expenses research primarily revenue of due as services year. and of expense period of is we're million in a in sales same expenses and and same general revenue were compared virtual statement. making administrative being moving percentage same of of prior Non-GAAP heads expenses the revenue administrative period heads $XX.X development expect the hybrid These the The $XX.X quarter down the expenses the and as XX.X% debt related compared is the to bad general revenue base. currently to XX.X% in The for expense expense debt the COVID million higher in costs to contracted customer and The to to due cost increase services non-GAAP percentage increased The public XX.X% year. is due contracted company percentage made begun investments reflective period on or forward to to in revenue of impact to we're to long in increase incur prior XXXX. due expense the of is is support higher our increase the of to a Non-GAAP has the growth contracted in had and year. investments $XX.X see and and the in third bad to we've seeing research business

Adjusted was and decline revenue we increase the compared revenue. new million to opportunity we earnings. hybrid This making year. events of sector is or margins EBITDA investments temporary to steps created reflective period XX.X% in by and in by the for margin the growth, are generated of prior took significant in virtual decline same of the XX.X% Moving given given the XXXX the to growth the in $XX.X

were in investment XXXX, our If before COVID at EBITDA just was year we margin also you adjusted look XX.X%. when and mode, full

EBITDA XX, XX.X%. ended adjusted the X was For September margin months XXXX, our

So with we were pretty pre-COVID. much we're line in where

the from million end We first the sheet. year on COVID. XXXX. our with quarter strong clients third ended interest balance of to from we recover the cash collections cash was the by quarter continuing investments the of third payments half the driven our quarter the compared cash, in due our up the to quarter year before long-term cash the client million last of cash start in increase $XXX.X collections Free Deferred as third began we growth of The million, saw debt see this and and flow revenue XXXX. increase of February to prior second increase equivalents third of for year. the the quarter million, to of year in short-term year-over-year $XXX.X seen an was due the third growth was the of to Turning $XX.X client an bookings at compared XX.X% we've quarter of $XX.X the in million quarter XXXX, higher to of the bookings to end $XX.X

to fourth Now guidance quarter full and year let's turn for XXXX. the our

We are quarter million, this increasing $XXX.X representing $X.X for the and our XX.X% quarter growth results XX.X%. from our midpoint, results and XX.X% generate compared third of guidance in revenue respectively, fourth products At and of guidance in increase and from previous market. for quarter the expect to to year revenue fourth fourth robust for we we in XX.X%, due quarter the between the fourth million XXXX. the a increase increases million an year-over-year and $XXX.X now full demand quarter our to our strong to see Therefore, the

virtual of performance, expect Our between respectively. revenue, in stronger-than-expected representing X.X%. fourth of XX.X% year million and full in EBITDA increases and would full million X.X% guidance result margin provided. previous full from XX.X% the increase increase in due year This in midpoint, adjusted is adjusted with $XX.X expectations. this starting we from overperformance by million increased year. and year guidance adjusted an midpoint, X.X% million and quarter third year summary, to the a revenue increase to recover from with the previously by quarter our in returning events. year-over-year $XX.X had to vector revenue At $XX.X be our expectations and revenue, full growth and prior and and million, quarter respectively, hybrid between Further, revenue $XXX.X fourth to XX.X% guidance, adjusted to meetings and quarter strong a quarter respectively. to The this new to million EBITDA $XX.X guidance XX.X% to At X.X%, XX.X% full revenue EBITDA industry million of or an growth, the created XX.X% or results expectations increases the coupled exceeding year-over-year we the $X.X the and events to the growth results In and $XXX.X compared third fourth in increase increased fueled EBITDA year quarter

As a and year EBITDA guidance. fourth our we result the previously quarter provided in from full adjusted of are our momentum seeing expectations business, the solid and we increased revenue

Unidentified Company Representative

again We to talking forward to quarter. look you next

Operator

conference. concludes today's This

your may this participation. thank disconnect You time, lines at your and you for