SVMK Inc. (NasdaqGS:SVMK) is scheduled to report Q3 earnings results before markets open for trading on November 5, 2020.
The company is expected to report earnings of -$0.01/share on revenue of $95.13 million. The consensus earnings per share (EPS) of -$0.01/share is based on a poll of 8 analysts and represents a decline over the same quarter last year when the company reported earnings of $0/share.
The revenue forecast of $95.13 million based on a poll of 9 analysts implies a year-over-year (YoY) growth in revenue of 19.9%. Last year the company reported $79.317 million in revenue for the quarter.
| Metric | Expected | Prior Year | YoY Change |
|---|---|---|---|
| Revenue | $95.13 | $79.32 | 19.9% |
| EPS | -$0.01 | $0 |
Earnings Call Trends
Historically, management has exceeded analyst expectations 6 out of the last 7 tracked quarters, and missed expectations 1 quarters.
What are your expectations from SVMK Inc. for earnings this quarter? Let us know in the comments!
| Quarter | Expected | Reported | Surprise | Result |
|---|---|---|---|---|
| Q2, 2020 | -$0.02 | $0 | 100% | Beat |
| Q1, 2020 | -$0.04 | -$0.03 | 30.9% | Beat |
| Q4, 2019 | -$0.04 | -$0.02 | 49.6% | Beat |
| Q3, 2019 | -$0.05 | -$0 | 99.5% | Beat |
| Q2, 2019 | -$0.05 | -$0.01 | 78.7% | Beat |
| Q1, 2019 | -$0.03 | -$0.02 | 39.8% | Beat |
| Q4, 2018 | -$0.02 | -$0.03 | -49.3% | Missed |
| Q3, 2018 | -$0.06 | -$0.01 | 82.4% | Beat |
In the following table, we summarize the company’s stock price movements after earnings releases. The “Price Day Prior” column shows the closing stock price on the day before the earnings report, and the “Price Next Day” column shows the stock price at the end of the trading day after the earnings report. After the last earnings report for the period ending June 30, 2020, the stock price reacted by falling −9.2%.
| Report Date | Price Day Prior | Price Next Day | Change % | Result |
|---|---|---|---|---|
| August 6, 2020 | $25.31 | $22.97 | −9.2% | Decline |
| May 7, 2020 | $15.87 | $18.47 | 16.4% | Increase |
| February 13, 2020 | $18.49 | $21.81 | 18.0% | Increase |
| November 7, 2019 | $17.41 | $15.98 | −8.2% | Decline |
The other question to consider is one of earnings manipulation. There is a lot of pressure on management each quarter to deliver on earnings expectations. The Beneish M-Score is a statistical model that provides some insight into whether the company might be manipulating earnings. With a Beneish M-Score of −2.76, the model suggests that the company is not likely to be an earnings manipulator. A value of −2.76 implies a 0.3% chance of earnings manipulation.
Fundamentals And Technical Analysis
SVMK Inc. is currently trading at $21.36/share, down −4.4% for the day. The company is trading at approximately 82.3% of its 52-week high of $26.24/share. The company’s stock price is down −7.0% since the last earnings report and down −7.5% over the previous week. The company’s 14 Day Relative Price Index (RSI) of 43.19 suggests the company is trading in technically neutral territory. The RSI is considered overbought when above 70 and oversold when below 30.
The current share price implies a price-to-earnings (P/E) multiple of −35.34 and a forward P/E multiple of −793.72.
SVMK Inc.’s current share price also implies a price-to-book (P/B) multiple of 9.33. The following table summarizes some other key fundamental ratios:
| Metric | Value |
|---|---|
| Last Reported Fiscal Period Key | FY2020.Q2 |
| Period End Date | June 30, 2020 |
| Stock Price (Current) | $21.36 |
| P/E Ratio | −35.3x |
| P/E Ratio (Fwd) | −793.7x |
| PEG Ratio | −0.7 |
| Total Debt / Total Capital | 8.8% |
| Levered Free Cash Flow | $57.148 million |
| EV / EBITDA | −59.3x |
SVMK Inc. is a mid-cap stock with a market capitalization of $3.135 billion and a total enterprise value of $3.259 billion. The company operates in the Information Technology sector and the Software industry.
SVMK Inc. provides survey software products and purpose-built solutions that enable organizations to engage with their customers, employees, and the markets they research and serve in the United States and internationally. The company’s cloud-based SaaS platform helps individuals and organizations to design and distribute surveys approximately 190 countries and territories. Its offers SurveyMonkey CX, a customer experience (CX) and feedback solution that transforms customer feedback into actionable insights; TechValidate, a marketing content automation solution; and SurveyMonkey Engage, an employee engagement solution, which measures employee experiences within an organization. The company also provides SurveyMonkey Audience, a market research solution that enables organizations to gain real-time actionable data from targeted panelists; SurveyMonkey Apply, an application management solution that is primarily used by educational institutions and non-profits seeking to allocate scholarships and grants; and Wufoo, an easy-to-use form builder that helps users create Web and mobile forms, collect file uploads, and receive online payments. In addition, it offers GetFeedback, a CX solution designed for the salesforce ecosystem; and Usabilla, which provides voice of customer technology. The company was formerly known as SurveyMonkey Inc. and changed its name to SVMK Inc. in March 2013. SVMK Inc. was founded in 1999 and is headquartered in San Mateo, California.
