On Thursday, McLean, Va.-based Cvent (CVT), a cloud-based subscription software developer for meetings management, revealed their second quarter (Q2) earnings report. The company recorded revenue of $47.3 million with an earnings-per-share (EPS) of 5 cents, beating on both revenue and EPS.
Analyst estimates had suggested that the tech company—who offers everything from Web surveys and email marketing to online registration services—will disclose revenue of about $45.7 million and break even on earnings-per-share.
In May, Cvent beat analyst estimates when it revealed its Q1 earnings report, posting earnings of 4 cents per share and revenue of $41.1 million. Along with the report, the company announced the acquisition of event management software firm SignUp4.
Cvent founder and CEO Reggie Aggarwal said in a statement "Cvent executed another strong quarter with revenue well above our guidance ... We are optimistic about the enthusiastic response our solutions for the meeting and event industry are receiving, and we believe this is reflected in the strong momentum we are experiencing, as our leadership position in the market continues to expand."
Cvent's stock was trading down 55 cents or about 2 percent to $27.06 when the market closed, but its currently spiking in after-hours trading. CVT was trading up about a dollar from where it closed, to $28, shortly after the bell.
Here’s the three things we learned from Cvent’s Q2 report:
*We'll be updating this post as further information becomes available, Investor Call begins at 5 p.m.* (ET)
Chief Financial Officer movement
During the company’s first investor call of the year it was announced that longtime CFO Pete Childs would be leaving the company. Cvent has since employed an executive search firm to help recruit his successor. That being said, Childs is currently still serving the company and will presumably play a part in today’s investor call, as he agreed to stay on until the end of August to smooth out the transition. It will be interesting to see if the company chooses to announce the appointment of a new CFO with investors prior to Childs’ exit.
Update:
Acquisition thunder
As it did with the previous earnings report, it’s possible that Cvent announces yet another acquisition deal. In fact, a previous comment by CEO/founder Reggie Aggarwal from May could have foreshadowed it. Important to note in relation to the SignUp4 acquisition, Aggarwal said in a statement, “Our acquisition … enhances our market position, bringing Cvent a strong customer base and additional event management functionality. We believe our increasingly comprehensive product suites for customers on both sides of the meetings and events ecosystem … will enable Cvent to capture a disproportionate share of the opportunity ahead of us.”
Could another acquisition mean improved “event management functionality” and additional products, especially in a space that’s becoming ever more competitive? Because if so, history would suggest that Cvent is willing to pull the trigger.
Update:
Cloud, cloud and more cloud
During the Q1 investor call, Aggarwal enthusiastically spoke about the company’s Hospitality Cloud offering. A product platform that—for hotels—essentially streamlines a number of marketing features, organizes business data and routes request for proposals (RFPs) to a centralized hub, all within an offsite cloud database. The Hospitality Cloud solution is still very much in the development process, continuously being updated and improved upon according to the company, so a status or feature update of any kind would be helpful. In June, a series of new features were previewed at the Cvent CONNECT conference.
Update: The company added several new hospitality cloud customers, including Costa Rica Convention Bureau, The Henderson and New World Hotel Beijing. Importantly, Cvent was also able to resign renewals or expansions (a major aspect of their revenue flow) with customers Hotel Del Coronado, Morgans Hotel Group and Sonesta Collection, according to data provided in the company's Q2 report.
