Dragoneer deSPAC Completed, Now Trading Under Cvent ‘CVT’, and at 48% Discount to Peers



KEY POINTS
  • Dragoneer Growth Opportunities Corp. II and Cvent completed their merger on December 8, creating a $5.3 billion market cap company. Cvent is a leading meetings, events, and hospitality technology provider.
  • The company announced the completion of the business combination of Cvent and Dragoneer, a special purpose acquisition company formed by Dragoneer Investment Group (the "Business Combination") on December 8, 2021. The Business Combination was approved by Dragoneer shareholders at a special meeting held on December 7, 2021. Starting today (December 9, 2021), the common stock of Cvent will begin trading on the Nasdaq Global Market under the ticker symbol "CVT".
  • Cvent grew revenue in F3Q21 13.1% YoY to $134.1 million, which was 3.6% above guidance. With a strong 3Q and clear visibility into a robust 4Q, the company raised its 4Q and full year guidance. The company now expects F4Q21 YoY revenue growth of 21.2%, up from 20.1% growth. For the full year 2021 Cvent raised revenue growth from 1.7% YoY to 3.2% YoY, at the mid-point. Adjusted EBITDA margin guidance for ‘21 is now 18.1%, up from 17.7%.
  • Frost & Sullivan estimates the total global spend for meetings and events software will be $29.7 billion this year. With expected 2021 revenue at ~$515 million, the company has significant runway to grow.
  • With 51% of the Fortune 500 companies as customers, enterprises choose Cvent’s offerings for scalability, security, and stability. It sees the integrability of its offerings—such as with marketing technology, customer relationship management (CRM), and associations management software (AMS) from the likes of Salesforce, HubSpot, and Oracle—as a material value proposition and one of the barriers to entry.
  • Cvent’s comparable analysis includes high-growth software companies with similar margins. Its comps have a median forward P/S of 17.5x, while CVT is trading at 9.1x, a 48% discount. Cvent’s recurring revenue percentage is roughly in-line with comps. The comp that is the closest to Cvent on revenue growth and EBITDA margin is Dynatrace, and it is trading at a 114% premium to Cvent, 19.8 x vs 9.1x.
  • Read our initiation and other reports on Cvent on our website.
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 events 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 they are part of building a clear picture of buyer interest.

Hospitality Cloud offers a marketplace that connects event organizers looking for appropriate event 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 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.

Dragoneer Growth Opportunities Corp. II and Cvent completed their merger on December 8, creating a $5.3 billion market cap company. Cvent is a leading meetings, events, and hospitality technology provider.

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