Cvent’s One Platform for the Total Event Program Approach Validated as Point Solution Peers Stumble and Shrink Significantly
|52 Week Range||$3.30-$10.96|
|Avg. Daily Vol. (30 day)||864,395|
|Shares Out (MM)||481|
|Market Cap (MM)||$2,705|
|Fiscal Year End||December|
- Three of Cvent’s competitors recently laid off a significant percentage of their employees. Bizzabo laid off 30%, Hopin laid off 29% in June after a 12% cut in February, and Hubilo laid off 12%. These competitors lack Cvent’s all-encompassing platform (powering in-person, virtual (including webinars), and hybrid events) and may be pressured as meetings increasingly return to in-person, business travel increases, and as organizations turn to one platform to manage their in‑person, virtual, and hybrid events.
- Cvent continues to operate with positive EBITDA and its complete set of offerings for virtual, in-person, and hybrid events should enable it to drive growth in challenging macroeconomic environments, while competitors with narrow point solutions are more exposed to negative external factors. Cvent may also benefit from competitors’ struggles as the market moves toward larger, more stable vendors and its positive cash from operations enables continued investment, while other competitors lose employees, reduce service levels, and cut R&D investment.
- Earnings are due to be announced on August 4th at 5pm EDT. Consensus estimates are for $154 million in sales, 25% growth, and EBITDA margin of 10.2%, despite strong investments for growth that could increase its leadership.
- 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) Cvent powers the event ecosystem as event planners and hoteliers interact through its Cvent Supplier Network; these network effects make its platform more valuable and gives 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. Cvent also continues to deepen its ecosystem through its vendor and app marketplaces, making it even more valuable to its customers.
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.
Three of Cvent’s competitors recently laid off a significant percentage of their employees. Bizzabo laid off 30%, Hopin laid off 29% in June after a 12% cut in February, and Hubilo laid off 12%. These competitors lack Cvent’s all-encompassing platform (powering in-person, virtual (including webinars), and hybrid events) and may be pressured as meetings increasingly return to in-person, business travel increases, and as organizations turn to one platform to manage their in person, virtual, and hybrid events.
Water Tower Research (“WTR”) is a professional publisher of investment research reports on public companies and, to a lesser extent, private firms (“the Companies”). WTR provides investor-focused content and digital distribution strategies designed to help companies communicate with investors.
WTR is not a registered investment adviser or a broker/dealer nor does WTR provide investment banking services. WTR operates as an exempt investment adviser under the so called “publishers’ exemption” from the definition of investment adviser under Section 202(a)(11) of the Investment Advisers Act of 1940. WTR does not provide investment ratings / recommendations or price targets on the companies it reports on. Readers are advised that the research reports are published and provided solely for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities or the rendering of investment advice. The information p...