Cvent Beats Even in a Tough Macro; 2Q22 Revenue Up 31% to a Record $161 Million



KEY POINTS
  • 2Q22 revenue grew 31.1% Y/Y, 4.4% higher than the high end of guidance, to a record $161 million; consensus was $154 million. CEO & Founder Reggie Aggarwal said that “strong second-quarter growth was driven by a healthier and more dynamic events industry, where in-person events are quickly returning and interest in virtual events continues.” Both Event Cloud and Hospitality Cloud had strong revenue growth of 31.6% and 29.8% Y/Y, respectively.
  • In-person events are returning and that plays to Cvent’s triple threat strength—its ability to power in-person, virtual, and hybrid events. This can be seen in the numbers as both Event and Hospitality grew well in the quarter. Also, three of Cvent’s competitors (Hopin, Bizzabo, and Hubilo) recently laid off a significant percentage of their employees. These competitors lack Cvent’s all‑encompassing platform. Flexibility is key today and Cvent’s all-in-one platform, combined with its financial strength and strong brand, further strengthens the company’s market position.
  • Guidance for 3Q22 is for adjusted EBITDA to grow 17.8% Y/Y at the mid-point, while revenue growth is expected to be 18.2% Y/Y at the mid-point. Consensus is for 3Q22 revenue of $159 million and EBITDA of $29 million, both roughly in line with guidance. The stock moved up nearly 5% in the aftermarket, after climbing 4% during the day.
  • Four key elements to the Cvent story are (1) even though it’s the global event tech leader, its market share is less than 5% today giving it significant growth runway, (2) manual/in-house event management processes are still the biggest competition for in-person events, (3) event planner sentiment has been improving, and (4) it powers the event ecosystem as event planners and hoteliers interact through its Cvent Supplier Network; these network effects make its platform more valuable and give it deep insight into market dynamics.
  • While Cvent has a large customer base of SMBs, associations, non-profits, and higher-ed organizations that deeply rely on events, Cvent has 51% of the Fortune 500 companies as customers; these enterprises choose its offerings for scalability, security, and stability. The company sees the integrability of its offerings—for example, with marketing technology, customer relationship management (CRM) systems, and associations management software (AMS) from the likes of Salesforce, HubSpot, Marketo (Adobe), Oracle and more—as a material value proposition and one of the barriers to entry.
COMPANY OVERVIEW

Cvent offers cloud-based, enterprise event marketing and management, and hospitality solutions through its Event Cloud and Hospitality Cloud businesses.

Event Cloud consists of tools that enable event organizers to manage the entire event lifecycle and deliver engagement across multiple event types and formats, such as in-person, virtual, and hybrid. Event Cloud serves as a system of record for events and engagement data collected across an organization’s total event program, which comprises every internal and external event that an organization hosts or attends. By using Cvent’s platform, organizations can aggregate and analyze attendee engagement across all events and build a clear picture of attendee interest and interactions that can be leveraged to improve business relationships and advance organizational goals.

Hospitality Cloud offers a marketplace that event organizers use to find and contract for appropriate meeting space for their in-person and hybrid events with hoteliers and venue operators through a vertical search engine built on a proprietary database of detailed event space information. In addition, Hospitality Cloud provides marketing and software solutions that hotels, destinations, and venues leverage to manage and measure their event business to attract valuable leads and grow their businesses and to manage and measure their events business from lead to sale.

The combination of Event Cloud and Hospitality Cloud results in a cohesive platform that generates network effects and attracts more event organizers, and hotels and venues.

Read our initiation and other reports on Cvent on our website and join us for a conversation with CEO & Founder Reggie Aggarwal on Monday, August 15, 2022, at 1 pm EDT. Register for the event here.

2Q22 revenue grew 31.1% Y/Y, 4.4% higher than the high end of guidance, to a record $161 million; consensus was $154 million. CEO & Founder Reggie Aggarwal said that “strong second-quarter growth was driven by a healthier and more dynamic events industry, where in-person events are quickly returning and interest in virtual events continues.” Both Event Cloud and Hospitality Cloud had strong revenue growth of 31.6% and 29.8% Y/Y, respectively.

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