According to a recent report by Technavio, the global online survey software market is expected to grow at 9% CAGR through 2024.  SurveyMonkey (Nasdaq: SVMK) recently reported its third quarter results that surpassed all market expectations, but its outlook was disappointing.

SurveyMonkey’s Financials

SurveyMonkey’s third quarter revenues grew 53% to $95.43 million. GAAP net loss was $26.1 million. On an adjusted basis, net loss was $1.3 million or a loss of $0.01 per share. The market forecast revenues of $95.13 and a loss of $0.01 per share.

Enterprise sales revenues accounted for 29% of the quarter’s revenues and grew 53%. Deferred revenue grew 24% to $165.1 million and remaining performance obligation grew 20% to $183.3 million. Its enterprise sales customers grew 25% to 7,700.

Paying users grew 13% to 803,000 with almost 87% of its paying users on annual plans, up 28%. Average revenue per user grew 7% to $478 for the quarter.

SurveyMonkey expects to report revenues of $99.5-$101.5 million for the fourth quarter and revenues of $436-$443 million for the year. The market forecast revenues of $101.5 million and an EPS of $0.00 for Q4 and revenues of $450 million and a loss per share of $0.05 for the year. The disappointing outlook sent the stock tumbling in the after-hours trading session.

SurveyMonkey’s Product Upgrades

In October, SurveyMonkey announced the general availability of its GetFeedback platform. The platform is a multi-channel customer experience platform that allows organizations to capture feedback from all channels, analyze, and use it to improve the customer experience.

GetFeedback is an agile CX platform with Salesforce Commerce Cloud that will enable brands to provide personalized experiences for shoppers that span web, mobile, social, and in-store. This purpose-built integration with Commerce Cloud has been built in partnership with Astound Commerce, an implementation partner for Salesforce. It is expected to deepen the platform’s integration with Salesforce solutions and strengthen the link between feedback and action for both their customers.

It also announced a new integration with cloud services and workflow management provider ServiceNow to enable enterprises to seamlessly pair mission-critical feedback data with digital workflows. The integration will provide customers with data-driven stakeholder insights that can help improve employee engagement, build customer relationships, and accelerate business growth. With the current lockdown conditions, businesses need to accelerate digital strategies to interact with customers and improve workforce experiences. They will require agile, user-friendly technology that the integration will be able to deliver.

SurveyMonkey continues to follow an API integration model. It has more than a hundred apps and plugins with its technology partners, but it still does not have an active PaaS strategy that nurtures an ISV ecosystem. I would like to see that as a likely evolution of its PaaS strategy. Read my recent article Which SaaS Players Will Win in PaaS to understand how PaaS is critical for SaaS players.

Its stock is trading at $23.8 with a market capitalization of $3.38 billion. It was trading at a 52-week high of $28.12 earlier this month. The stock had fallen to a 52-week low of $9.35 in March last year amid the market turbulence.