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Momentive Global (NASDAQ: MNTV)

Momentive Global LogoMomentive Global (NASDAQ: MNTV), formerly SurveyMonkey, is a leading provider of cloud-based survey software products that enable companies to better engage with customers and employees. Founded as SurveyMonkey in 1999, and based in San Mateo, California, the company is best known for its flagship SurveyMonkey customer feed-back software. An out-of-favor stock, Momentive Global has had a storied history since its IPO five years ago.

The company, then known as SurveyMonkey, priced its 15 million share IPO at $12 per share on the NASDAQ on September 25th 2018. The underwriters subsequently exercised their option to purchase an additional 2.25 million shares. The IPO was led by J.P. Morgan Securities, Allen & Company and BofA Merrill Lynch. Credit Suisse, UBS, Wells Fargo, SunTrust Robinson Humphrey, Code Advisors, Foros, JMP Securities and LionTree Advisors.

Momentive Global is best known for its namesake SurveyMonkey cloud-based questionnaire software that is primarily used for customer feed-back, TechValidate, a marketing content automation software solution, and SurveyMonkey Engage, which is focused on internal employee surveys and feed-back.

In June of 2021, the company changed its name to Momentive Global, reflecting its wider range of customer and employee experience management offerings, which include the addition of market research services. In October of 2021, the company announced that it would be acquired by Zendesk in an all-stock transaction for roughly $4.1 billion. With the intent to expand from customer service to a broader market of global customer intelligence, Zendesk, at the time, appeared to be particularly interested in the SurveyMonkey portion of the business. However, the deal was ultimately rejected by Zendesk shareholders, and Zendesk was forced to terminate the transaction. Zendesk was ultimately taken private in June of last year in a $10 billion acquisition by an investor group led by Permira and Hellman and Friedman.

Today, more than 345,000 organizations around the world use one or more of MNTV’s products, and the company notes that it has over 17 million active users that draw on market insights, brand insights, as well as employee, customer, and product experiences. Over 95 percent of the Fortune 500 use a Momentive product.

In a measure to return cash to shareholders, the company initiated a share repurchase plan in February of 2022 with the intent to repurchase up to $200 million of its common stock. Through the first three quarters of last year, Momentive had repurchased $84 million. At the end of Q3, MNTV held $193 million in cash along with $183 million in debt, for a net cash position of $183 million. The company’s DSOs are 23 days, a reasonable level, attesting to the short-term nature of most of its customer contracts, which are said to be of a duration of one year or less. The company announced an 11 percent workforce reduction, coinciding with its Q3 2022 earnings results. Last month, the company appointed a new CFO, Rich Sullivan, whose experience includes stints at Dreamworks, Twitter, and AT&T.

Independent IPO Research, Independent research on Bumble, Internet IPO Research, Internet IPOs, internet stock research, iOS Apps

Bumble: A Different Kind of Dating Platform

Bumble logoBumble (NASDAQ: BMBL), an online dating and social networking platform, was founded in 2014 by Whitney Wolfe Herd. Headquartered in Austin, Texas, with offices in Barcelona, London, and Moscow, Bumble was created with women at the center; a dating solution where women make the first move. Bumble is rewriting the script on gender norms, with a platform designed to be safe and empowering for women while also providing a better environment for all. Bumble utilizes innovative technology solutions to build a safer and more inclusive way to connect online, regardless of gender. Consensus estimates call for the company to generate revenue of $724 million this year, with profitability bordering on break-even.

Bumble debuted on the NASDAQ on February 11th, 2021, in a 57.5 million Class A common stock offering, priced at $43 per share. Bumble’s pre-IPO balance sheet consisted of $218 million in cash with $628 million in debt. When added to the $2.5 billion raised from the offering, Bumble possessed close to $2.7 billion in cash with $628 million in debt immediately after the offering. With a recent share price of $60, Bumble carries a market cap of approximately $11.2 billion.

Bumble’s platform enables users to connect and build healthy relationships on their own terms. Further, Bumble believes there is an opportunity to extend its solutions beyond dating, to encompass relationships across all areas of life, including friendships, careers, and more. By empowering women across all their relationships, Bumble feels it can grow into a leading global women’s brand.

Bumble currently operates two apps, Bumble and Badoo, where more than 42 million users come every month to discover new people and connect in an empowering, secure, and safe environment. These two apps run on a common infrastructure, allowing insights to be shared between the apps. Bumble believes this is an integral piece in providing its users with high-quality and personalized experiences. Bumble facilitated an average of more than 150 million messages sent per day across its two apps in the nine months ended September 30th, 2020.
The Bumble app was released in 2014 and was one of the first dating apps built with women at its core. With Bumble, women make the first move, and have done so more than 1.7 billion times since the app’s launch. Bumble supports roughly 12 million monthly active users, and is the second highest grossing dating app in the world, according to Sensor Tower. Bumble is a leading online dating platform in many countries, such as the United States, the United Kingdom, Australia, and Canada. During the nine months ended September 30th, 2020, Bumble boasted 1.1 million Bumble App Paying Users.

The Badoo app was founded by Andrey Andreev and first launched in 2006. This app was a pioneer in free web and mobile dating products. Badoo’s slogan of “Date Honestly” deeply connects to Bumble’s focus on building meaningful relationships for everyone. Bumble and Badoo are two of the highest grossing online dating apps in the world. According to Sensor Tower, as of August 2020, Bumble ranked in the top five grossing iOS lifestyle apps in 30 countries, and Badoo ranked among the five highest grossing iOS lifestyle apps in 89 countries.