Recent Quotes View Full List My Watchlist Create Watchlist Indicators DJI Nasdaq Composite SPX Gold Crude Oil EL&P Market Index Markets Stocks ETFs Tools Overview News Currencies International Treasuries Cvent Announces Fourth Quarter and Fiscal Year 2022 Financial Results By: Cvent Holding Corp. via Business Wire March 14, 2023 at 07:46 AM EDT Revenue Exceeds High End of Guidance Full Year Revenue Grows 21.5% Cvent Holding Corp. (“Cvent”) (Nasdaq: CVT), an industry-leading meetings, events and hospitality technology provider, today announced financial results for the fourth quarter and full fiscal year ended December 31, 2022. Fourth Quarter 2022 Financial Highlights Revenue Total revenue was $170.9 million for the fourth quarter of 2022, an increase of 18.2% from the comparable period in 2021, and $0.6 million higher than the high end of our guidance. Event Cloud revenue was $120.6 million for the fourth quarter of 2022, an increase of 17.2% from the comparable period in 2021. Hospitality Cloud revenue was $50.3 million for the fourth quarter of 2022, an increase of 20.5% from the comparable period in 2021. Net Loss and Adjusted EBITDA Net loss was $19.1 million for the fourth quarter of 2022 compared to $21.5 million in the comparable period in 2021. Adjusted EBITDA (defined below) was $43.5 million for the fourth quarter of 2022, which was $3.7 million higher than the high end of our guidance. Adjusted EBITDA margin (defined below) was 25.5% compared to the high end of our guidance of 23.4%. Adjusted EBITDA in the comparable period of 2021 was $32.8 million, with an Adjusted EBITDA margin of 22.7%. Fiscal Year 2022 Financial Highlights Revenue Total revenue was $630.6 million for the fiscal year 2022, an increase of 21.5% from the comparable period in 2021, and $0.7 million higher than the high end of our guidance. Event Cloud revenue was $441.1 million for the fiscal year 2022, an increase of 21.8% from the comparable period in 2021. Hospitality Cloud revenue was $189.5 million for the fiscal year 2022, an increase of 20.9% from the comparable period in 2021. Net Loss and Adjusted EBITDA Net loss was $100.3 million for the fiscal year 2022 compared to $86.1 million in the comparable period in 2021. Adjusted EBITDA (defined below) was $113.4 million for the fiscal year 2022, which was $3.7 million higher than the high end of our guidance, and Adjusted EBITDA margin (defined below) was 18.0% compared to the high end of our guidance of 17.4%. Adjusted EBITDA in the comparable period of 2021 was $103.7 million, with an Adjusted EBITDA margin of 20.0%. Cash, Cash Equivalents and Short-Term Investments Cash, cash equivalents and short-term investments as of December 31, 2022 totaled $140.0 million, compared to $127.1 million as of December 31, 2021. Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin results to their GAAP basis results are shown in detail below. Guidance Given Cvent’s entry into a definitive agreement on March 14, 2023 to be acquired by an affiliate of private equity funds managed by Blackstone (“Blackstone”), the Company will not provide guidance for first quarter and full year 2023. Conference Call Information Given Cvent’s entry into a definitive agreement on March 14, 2023 to be acquired by Blackstone, the Company will not host a conference call to discuss its fourth quarter and full year 2022 financial results and outlook. About Cvent Cvent Holding Corp. (Nasdaq: CVT) is a leading meetings, events, and hospitality technology provider with approximately 4,900 employees and approximately 22,000 customers worldwide as of December 31, 2022. Founded in 1999, the company delivers a comprehensive event marketing and management platform and offers a global marketplace where event professionals collaborate with venues to create engaging, impactful experiences. Cvent is headquartered in Tysons, Virginia, just outside of Washington D.C., and has additional offices around the world to support its growing global customer base. The comprehensive Cvent event marketing and management platform offers software solutions to event organizers and marketers for online event registration, venue selection, event marketing and management, virtual and onsite solutions, and attendee engagement. Cvent’s suite of products automate and simplify the event management lifecycle and maximize the impact of in-person, virtual, and hybrid events. Hotels and venues use Cvent’s supplier and venue solutions to win more group and corporate travel business through Cvent’s sourcing platforms. Cvent solutions optimize the event management value chain and have enabled clients around the world to manage millions of meetings and events. For more information, please visit Cvent.com. From time to time, we plan to utilize our investor relations website, investors.cvent.com, as a channel of distribution for material company information. Non-GAAP Financial Measures This earnings press release uses and discusses the following financial measures not presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”): Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses, Adjusted EBITDA and Adjusted Free Cash Flow, and certain ratios and other metrics derived therefrom, including Adjusted EBITDA margin which represents Adjusted EBITDA divided by revenue and Non-GAAP gross margin which represents Non-GAAP Gross Profit divided by revenue. Reconciliation of these non-GAAP financial measures to their GAAP basis results can be found within the tables included in this release. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Cvent’s financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, and to compare our performance to that of prior periods for trend analyses. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to more thoroughly analyze key financial metrics used to make operational decisions. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Cvent’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business. Cvent excludes or adjusts for one or more of the following items from these non-GAAP financial measures: Interest expense. Cvent excludes this expense from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Other income, net. Cvent excludes this item, which is comprised primarily of foreign exchange gains/(losses) and state tax settlements, from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Provision for income taxes. Cvent excludes this item from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Amortization of deferred financing costs and debt discount. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Intangible asset amortization. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit and Adjusted EBITDA. Amortization of software development costs. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit and Adjusted EBITDA. Stock-based compensation expense. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Cost related to acquisitions. Cost related to acquisitions is comprised of the value of contingent payments included in compensation expense which relate to the potential cash payment to certain employees of acquired companies whose right to receive such payment is forfeited if they terminate their employment prior to the required service period. As the contingent payments are subject to continued employment, GAAP requires that these payments be accounted for as compensation expense and such expense is subject to revaluation. Additionally, cost related to acquisitions includes expenses related to performing due diligence, valuation, earnouts or other acquisition-related activities. Cvent excludes these expenses primarily because they are not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Restructuring expenses. Cvent excludes this expense, which is comprised of expenses associated with severance to terminated employees of acquired entities, retention bonuses to employees retained from acquired entities, costs to discontinue use of a back-office system and closing of certain office spaces, primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Other items. Cvent excludes this item, which is comprised of certain expenses associated with prosecuting a trade secret misappropriation claim and credit facility fees, net of the gain from government subsidies related to the global COVID-19 pandemic, primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Loss on extinguishment of debt. Cvent excludes this expense from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Purchases of Property and Equipment. This item is customarily included as a reduction to net cash provided by operating activities in the calculation of free cash flow. This item is reflected in Adjusted Free Cash Flow. Capitalized Software Development Costs. This item is customarily included as a reduction to net cash provided by operating activities in the calculation of free cash flow. This item is reflected in Adjusted Free Cash Flow. Change in Fees Payable to Customers. Cvent excludes the change in this balance sheet item primarily because it is not considered a part of ongoing net cash provided by operating activities when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted Free Cash Flow. Interest Paid. Cvent excludes these cash payments primarily because it is not considered a part of ongoing net cash provided by operating activities when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted Free Cash Flow. Forward-Looking Statements Certain statements in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, and you can often identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “target,” “projects,” “forecasts,” “shall,” “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this release are based upon Cvent’s historical performance and on its current plans, operating budgets, estimates and expectations in light of information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks, uncertainties, assumptions and factors that could cause actual results to differ materially from those anticipated, including, but not limited to: the risk that trends stated or implied by this release cannot or will not be sustained at the current pace or may fluctuate from current expectations, including trends and expectations related to revenue, revenue growth, net loss, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow margin, gross profit, gross margin, expenses, deferred revenue, interest expense,the demand for events and meetings, the return to in-person events, demand for advertising and software solutions, and demand for an integrated platform; the impact of current global events and macroeconomic conditions on customer’s demand for our products and services, Cvent’s operations, financial results and on Cvent’s virtual, hybrid and in-person offerings; Cvent’s ability to retain, engage, and upsell current customers and attract and retain new customers; Cvent’s ability to maintain and expand relationships with hotels and venues; the competitiveness of the market in which Cvent operates and Cvent’s ability to maintain and increase its market position; Cvent’s ability to attract and retain key employees, including its senior management team; the impact of a disruption of Cvent’s operations, infrastructure or systems, or disruption of the operations, infrastructure or systems of the third parties on which Cvent relies; Cvent’s ability to manage its costs and growth effectively; Cvent’s ability to develop, introduce and market new and enhanced versions of its solutions to meet customer needs and expectations; the risk that the industry does not get back to a normalized state when and as expected; the risk that the proposed merger with Blackstone may not be completed in a timely manner or at all, which may adversely affect Cvent’s business and the price of Cvent’s common stock; the effect of the announcement or pendency of the proposed transaction on Cvent’s business relationships, operating results and business generally; risks that the proposed transaction disrupts Cvent’s current plans and operations; and other factors beyond our control. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements as well as other cautionary statements that are made from time to time in our other SEC filings and public communications, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, including in the “Risk Factors” section of those filings. Actual results may differ materially. Investors should evaluate all forward-looking statements in the context of these risks and uncertainties. The forward-looking statements included herein are made only as of the date hereof, based on current estimates, expectations, observations and trends. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. CVENT HOLDING CORP. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) As of December 31, 2022 2021 Assets Current assets: Cash and cash equivalents $ 99,108 $ 126,526 Restricted cash 815 103 Short-term investments 40,925 538 Accounts receivable, net of allowance of $2.6 million and $4.5 million, respectively 120,362 112,251 Capitalized commission, net 26,685 25,393 Prepaid expenses and other current assets 17,819 20,376 Total current assets 305,714 285,187 Property and equipment, net 15,250 15,334 Capitalized software development costs, net 96,959 108,851 Intangible assets, net 172,781 221,371 Goodwill 1,620,312 1,617,880 Operating lease right-of-use assets 20,398 28,370 Capitalized commission, non-current, net 23,477 22,999 Deferred tax assets, non-current 2,425 2,403 Other assets, non-current, net 8,617 3,684 Total assets $ 2,265,933 $ 2,306,079 Liabilities and Stockholders’ equity Current liabilities: Current portion of long-term debt $ — $ — Accounts payable 2,147 2,675 Accrued expenses and other current liabilities 82,249 79,827 Fees payable to customers 38,379 24,982 Operating lease liabilities, current 11,070 11,290 Deferred revenue 267,882 239,843 Total current liabilities 401,727 358,617 Deferred tax liabilities, non-current 18,103 16,695 Long-term debt, net 208,000 262,302 Operating lease liabilities, non-current 19,712 30,809 Other liabilities, non-current 7,526 8,200 Total liabilities 655,068 676,623 Commitments and contingencies (Note 15) Stockholders’ equity: Common stock, $0.0001 par value, 1,500,000,000 shares authorized at December 31, 2022 and 2021, respectively; 488,296,792 and 481,121,695 shares issued and outstanding as of December 31, 2022 and 2021, respectively 49 48 Additional paid-in capital 2,571,424 2,483,761 Accumulated other comprehensive loss (8,731 ) (2,746 ) Accumulated deficit (951,877 ) (851,607 ) Total stockholders’ equity 1,610,865 1,629,456 Total liabilities and stockholders’ equity $ 2,265,933 $ 2,306,079 CVENT HOLDING CORP. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share data) (unaudited) Three Months Ended Year Ended December 31, 2022 2021 2022 2021 Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Cost of revenue 63,082 50,969 247,854 191,448 Gross profit 107,836 93,683 382,704 327,363 Operating expenses: Sales and marketing 45,172 36,547 176,959 135,616 Research and development 31,854 24,611 130,620 96,627 General and administrative 26,911 24,494 102,544 88,206 Intangible asset amortization, exclusive of amounts included in cost of revenue 12,153 12,757 48,637 51,478 Total operating expenses 116,090 98,409 458,760 371,927 Loss from operations (8,254 ) (4,726 ) (76,056 ) (44,564 ) Interest expense (2,811 ) (6,356 ) (9,865 ) (29,073 ) Amortization of deferred financing costs and debt discount (157 ) (783 ) (891 ) (3,606 ) Loss on extinguishment of debt - (7,159 ) (3,219 ) (7,159 ) Other income/(expense), net (843 ) (771 ) 1,135 5,367 Loss before income taxes (12,065 ) (19,795 ) (88,896 ) (79,035 ) Provision for/(benefit from) income taxes 7,082 1,750 11,374 7,044 Net loss (19,147 ) (21,545 ) (100,270 ) (86,079 ) Other comprehensive income/(loss): Foreign currency translation (loss)/gain 5,632 (446 ) (5,985 ) (2,793 ) Comprehensive loss $ (13,515 ) $ (21,991 ) $ (106,255 ) $ (88,872 ) Basic and Diluted net loss per common share $ (0.04 ) $ (0.05 ) $ (0.21 ) $ (0.20 ) Basic and Diluted weighted-average common shares outstanding 485,772,963 433,345,289 483,047,301 420,692,510 CVENT HOLDING CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Operating activities: Net loss $ (19,147 ) $ (21,545 ) $ (100,270 ) $ (86,079 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 30,930 31,205 122,141 124,347 Amortization of the right-of-use assets 2,032 1,546 7,972 8,363 Allowance for expected credit losses, net 938 2,767 1,316 8,316 Amortization of deferred financing costs and debt discount 157 783 891 3,606 Amortization of capitalized commission 8,278 7,712 32,029 29,280 Unrealized foreign currency transaction loss (149 ) 134 491 153 Loss on extinguishment of debt — 7,159 3,219 7,159 Stock-based compensation 19,070 8,245 65,078 25,056 Change in deferred taxes 1,223 (1,909 ) 1,215 (596 ) Change in operating assets and liabilities, net of business combinations: Accounts receivable (44,424 ) (32,645 ) (10,214 ) 19,966 Prepaid expenses and other assets 3,283 (733 ) 2,360 (6,797 ) Capitalized commission, net (7,847 ) (6,929 ) (35,571 ) (33,635 ) Accounts payable, accrued expenses and other liabilities (29,155 ) (7,036 ) 16,456 1,961 Operating lease liability (2,888 ) (2,267 ) (11,317 ) (11,933 ) Deferred revenue 20,680 14,151 28,339 33,029 Net cash provided by operating activities (17,019 ) 638 124,135 122,196 Investing activities: Purchase of property and equipment (1,185 ) (1,907 ) (6,890 ) (4,675 ) Capitalized software development costs (12,659 ) (10,706 ) (51,072 ) (40,978 ) Purchase of investments (48,067 ) (4,292 ) (93,231 ) (35,727 ) Maturities of investments 5,532 6,450 48,380 35,189 Acquisitions, net of cash acquired (26 ) — (3,578 ) (14,769 ) Proceeds from divestiture — — 135 122 Net cash used in investing activities (56,405 ) (10,455 ) (106,256 ) (60,838 ) Financing activities: Proceeds from Reverse Recapitalization Transaction — 552,693 — 552,693 Payment of offering costs — (30,760 ) — (30,760 ) Principal repayments on first lien term loan — (500,000 ) (265,696 ) (505,951 ) Principal repayments of revolving credit facility (37,000 ) — (157,000 ) (13,400 ) Proceeds from revolving credit facility 80,000 — 365,000 — Payment of debt issuance costs — — (3,141 ) — Proceeds from exercise of stock options 9,237 — 17,059 522 Proceeds from Employee Stock Purchase Plan 3,957 — 3,957 — Repurchase of Common stock — (173 ) — (230 ) Payments of tax withholdings on vesting of restricted stock units — — (31 ) — Net cash provided by financing activities 56,194 21,760 (39,852 ) 2,874 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 6,658 (823 ) (4,733 ) (3,073 ) Change in cash, cash equivalents, and restricted cash (10,572 ) 11,120 (26,706 ) 61,159 Cash, cash equivalents, and restricted cash, beginning of period 110,495 115,509 126,629 65,470 Cash, cash equivalents, and restricted cash, end of period $ 99,923 $ 126,629 $ 99,923 $ 126,629 Supplemental cash flow information: Interest paid $ 2,391 $ 6,335 $ 9,346 $ 29,056 Income taxes paid $ 3,491 $ 755 $ 8,668 $ 5,410 Supplemental disclosure of non-cash investing and financing activities: Outstanding payments for purchase of property and equipment at period end $ 1,157 $ 223 $ 1,484 $ 554 Outstanding payments for capitalized software development costs at period end $ 23 $ 235 $ 1,006 $ 748 RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except share amounts and share counts) (unaudited) Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP Gross Profit: Gross Profit $ 107,836 $ 93,683 $ 382,704 $ 327,363 Adjustments Depreciation 343 592 1,820 3,363 Amortization of software development costs 16,843 15,607 66,024 61,344 Intangible asset amortization - - - 180 Stock-based compensation expense 2,267 460 7,025 1,410 Restructuring expense - 8 10 19 Cost related to acquisitions - 1 - 12 Other items (2 ) (452 ) (388 ) (1,446 ) Non-GAAP Gross Profit $ 127,287 $ 109,899 $ 457,195 $ 392,245 Gross Margin: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Gross Margin 63.1 % 64.8 % 60.7 % 63.1 % Non-GAAP Gross Margin 74.5 % 76.0 % 72.5 % 75.6 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP Sales & Marketing Expenses: Sales & marketing $ 45,172 $ 36,547 $ 176,959 $ 135,616 Adjustments Depreciation (170 ) (188 ) (680 ) (1,320 ) Stock-based compensation expense (6,345 ) (2,472 ) (21,904 ) (7,843 ) Restructuring expense (4 ) (35 ) (56 ) (107 ) Cost related to acquisitions - (533 ) (10 ) (650 ) Other items 4 138 136 518 Non-GAAP Sales & Marketing Expenses $ 38,657 $ 33,457 $ 154,445 $ 126,214 Sales & Marketing Expenses as a Percent of Revenue: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Sales & marketing expenses 26.4 % 25.3 % 28.1 % 26.1 % Non-GAAP sales & marketing expenses 22.6 % 23.1 % 24.5 % 24.3 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP Research & Development Expenses: Research & development $ 31,854 $ 24,611 $ 130,620 $ 96,627 Adjustments Depreciation (220 ) (296 ) (900 ) (1,727 ) Stock-based compensation expense (5,071 ) (2,126 ) (16,860 ) (6,447 ) Restructuring expense (15 ) (48 ) (24 ) (115 ) Cost related to acquisitions - (45 ) - (54 ) Other items - 1,660 1,505 5,026 Non-GAAP Research & Development Expenses $ 26,548 $ 23,756 $ 114,341 $ 93,310 Research & Development Expenses as a Percent of Revenue: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Research & development expenses 18.6 % 17.0 % 20.7 % 18.6 % Non-GAAP research & development expenses 15.5 % 16.4 % 18.1 % 18.0 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP General & Administrative Expenses: General & administrative $ 26,911 $ 24,494 $ 102,544 $ 88,206 Adjustments Depreciation (907 ) (837 ) (3,981 ) (3,980 ) Stock-based compensation expense (5,386 ) (3,187 ) (19,288 ) (9,357 ) Restructuring expense (261 ) (377 ) (950 ) (2,003 ) Cost related to acquisitions (1,103 ) 233 (1,770 ) (875 ) Other items (713 ) (462 ) (1,551 ) (2,947 ) Non-GAAP General & Administrative Expenses $ 18,541 $ 19,864 $ 75,004 $ 69,044 General & Administrative Expenses as a Percent of Revenue: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 General & administrative expenses 15.7 % 16.9 % 16.3 % 17.0 % Non-GAAP general & administrative expenses 10.8 % 13.7 % 11.9 % 13.3 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Adjusted EBITDA Net loss $ (19,147 ) $ (21,545 ) $ (100,270 ) $ (86,079 ) Adjustments Interest expense 2,811 6,356 9,865 29,073 Amortization of deferred financing costs and debt discount 157 783 891 3,606 Loss on extinguishment of debt - 7,159 3,219 7,159 Other income, net 843 771 (1,135 ) (5,367 ) Provision for/(benefit from) income taxes 7,082 1,750 11,374 7,044 Depreciation 1,640 1,911 7,380 10,389 Amortization of software development costs 16,843 15,607 66,024 61,524 Intangible asset amortization 12,153 12,757 48,637 51,478 Stock-based compensation expense 19,070 8,245 65,078 25,056 Restructuring expense 281 468 1,040 2,245 Cost related to acquisitions 1,103 346 1,779 1,591 Other items 707 (1,788 ) (477 ) (4,043 ) Adjusted EBITDA $ 43,543 $ 32,820 $ 113,405 $ 103,676 Adjusted EBITDA margin Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Net loss margin (11.2 )% (14.9 )% (15.9 )% (16.6 )% Adjusted EBITDA margin 25.5 % 22.7 % 18.0 % 20.0 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) (in thousands) Adjusted Free Cash Flow: Net cash provided by operating activities: $ (17,019 ) $ 638 $ 124,135 $ 122,196 Adjustments Purchase of property and equipment (1,185 ) (1,907 ) (6,890 ) (4,675 ) Capitalized software development costs (12,659 ) (10,706 ) (51,072 ) (40,978 ) Change in fees payable to customers 26,122 5,768 (13,397 ) (8,110 ) Interest paid 2,391 6,335 9,346 29,056 Adjusted Free Cash Flow $ (2,350 ) $ 128 $ 62,122 $ 97,489 Adjusted Free Cash Flow margin Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Adjusted Free Cash Flow margin (1.4 )% 0.1 % 9.9 % 18.8 % View source version on businesswire.com: https://www.businesswire.com/news/home/20230314005638/en/Contacts Investor Contact CventIR@icrinc.com Media Contact Erica Stoltenberg estoltenberg@cvent.com (571) 378-6240 Data & News supplied by www.cloudquote.io Stock quotes supplied by Barchart Quotes delayed at least 20 minutes. 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Cvent Announces Fourth Quarter and Fiscal Year 2022 Financial Results By: Cvent Holding Corp. via Business Wire March 14, 2023 at 07:46 AM EDT Revenue Exceeds High End of Guidance Full Year Revenue Grows 21.5% Cvent Holding Corp. (“Cvent”) (Nasdaq: CVT), an industry-leading meetings, events and hospitality technology provider, today announced financial results for the fourth quarter and full fiscal year ended December 31, 2022. Fourth Quarter 2022 Financial Highlights Revenue Total revenue was $170.9 million for the fourth quarter of 2022, an increase of 18.2% from the comparable period in 2021, and $0.6 million higher than the high end of our guidance. Event Cloud revenue was $120.6 million for the fourth quarter of 2022, an increase of 17.2% from the comparable period in 2021. Hospitality Cloud revenue was $50.3 million for the fourth quarter of 2022, an increase of 20.5% from the comparable period in 2021. Net Loss and Adjusted EBITDA Net loss was $19.1 million for the fourth quarter of 2022 compared to $21.5 million in the comparable period in 2021. Adjusted EBITDA (defined below) was $43.5 million for the fourth quarter of 2022, which was $3.7 million higher than the high end of our guidance. Adjusted EBITDA margin (defined below) was 25.5% compared to the high end of our guidance of 23.4%. Adjusted EBITDA in the comparable period of 2021 was $32.8 million, with an Adjusted EBITDA margin of 22.7%. Fiscal Year 2022 Financial Highlights Revenue Total revenue was $630.6 million for the fiscal year 2022, an increase of 21.5% from the comparable period in 2021, and $0.7 million higher than the high end of our guidance. Event Cloud revenue was $441.1 million for the fiscal year 2022, an increase of 21.8% from the comparable period in 2021. Hospitality Cloud revenue was $189.5 million for the fiscal year 2022, an increase of 20.9% from the comparable period in 2021. Net Loss and Adjusted EBITDA Net loss was $100.3 million for the fiscal year 2022 compared to $86.1 million in the comparable period in 2021. Adjusted EBITDA (defined below) was $113.4 million for the fiscal year 2022, which was $3.7 million higher than the high end of our guidance, and Adjusted EBITDA margin (defined below) was 18.0% compared to the high end of our guidance of 17.4%. Adjusted EBITDA in the comparable period of 2021 was $103.7 million, with an Adjusted EBITDA margin of 20.0%. Cash, Cash Equivalents and Short-Term Investments Cash, cash equivalents and short-term investments as of December 31, 2022 totaled $140.0 million, compared to $127.1 million as of December 31, 2021. Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin results to their GAAP basis results are shown in detail below. Guidance Given Cvent’s entry into a definitive agreement on March 14, 2023 to be acquired by an affiliate of private equity funds managed by Blackstone (“Blackstone”), the Company will not provide guidance for first quarter and full year 2023. Conference Call Information Given Cvent’s entry into a definitive agreement on March 14, 2023 to be acquired by Blackstone, the Company will not host a conference call to discuss its fourth quarter and full year 2022 financial results and outlook. About Cvent Cvent Holding Corp. (Nasdaq: CVT) is a leading meetings, events, and hospitality technology provider with approximately 4,900 employees and approximately 22,000 customers worldwide as of December 31, 2022. Founded in 1999, the company delivers a comprehensive event marketing and management platform and offers a global marketplace where event professionals collaborate with venues to create engaging, impactful experiences. Cvent is headquartered in Tysons, Virginia, just outside of Washington D.C., and has additional offices around the world to support its growing global customer base. The comprehensive Cvent event marketing and management platform offers software solutions to event organizers and marketers for online event registration, venue selection, event marketing and management, virtual and onsite solutions, and attendee engagement. Cvent’s suite of products automate and simplify the event management lifecycle and maximize the impact of in-person, virtual, and hybrid events. Hotels and venues use Cvent’s supplier and venue solutions to win more group and corporate travel business through Cvent’s sourcing platforms. Cvent solutions optimize the event management value chain and have enabled clients around the world to manage millions of meetings and events. For more information, please visit Cvent.com. From time to time, we plan to utilize our investor relations website, investors.cvent.com, as a channel of distribution for material company information. Non-GAAP Financial Measures This earnings press release uses and discusses the following financial measures not presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”): Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses, Adjusted EBITDA and Adjusted Free Cash Flow, and certain ratios and other metrics derived therefrom, including Adjusted EBITDA margin which represents Adjusted EBITDA divided by revenue and Non-GAAP gross margin which represents Non-GAAP Gross Profit divided by revenue. Reconciliation of these non-GAAP financial measures to their GAAP basis results can be found within the tables included in this release. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Cvent’s financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, and to compare our performance to that of prior periods for trend analyses. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to more thoroughly analyze key financial metrics used to make operational decisions. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Cvent’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business. Cvent excludes or adjusts for one or more of the following items from these non-GAAP financial measures: Interest expense. Cvent excludes this expense from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Other income, net. Cvent excludes this item, which is comprised primarily of foreign exchange gains/(losses) and state tax settlements, from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Provision for income taxes. Cvent excludes this item from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Amortization of deferred financing costs and debt discount. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Intangible asset amortization. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit and Adjusted EBITDA. Amortization of software development costs. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit and Adjusted EBITDA. Stock-based compensation expense. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Cost related to acquisitions. Cost related to acquisitions is comprised of the value of contingent payments included in compensation expense which relate to the potential cash payment to certain employees of acquired companies whose right to receive such payment is forfeited if they terminate their employment prior to the required service period. As the contingent payments are subject to continued employment, GAAP requires that these payments be accounted for as compensation expense and such expense is subject to revaluation. Additionally, cost related to acquisitions includes expenses related to performing due diligence, valuation, earnouts or other acquisition-related activities. Cvent excludes these expenses primarily because they are not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Restructuring expenses. Cvent excludes this expense, which is comprised of expenses associated with severance to terminated employees of acquired entities, retention bonuses to employees retained from acquired entities, costs to discontinue use of a back-office system and closing of certain office spaces, primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Other items. Cvent excludes this item, which is comprised of certain expenses associated with prosecuting a trade secret misappropriation claim and credit facility fees, net of the gain from government subsidies related to the global COVID-19 pandemic, primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Loss on extinguishment of debt. Cvent excludes this expense from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Purchases of Property and Equipment. This item is customarily included as a reduction to net cash provided by operating activities in the calculation of free cash flow. This item is reflected in Adjusted Free Cash Flow. Capitalized Software Development Costs. This item is customarily included as a reduction to net cash provided by operating activities in the calculation of free cash flow. This item is reflected in Adjusted Free Cash Flow. Change in Fees Payable to Customers. Cvent excludes the change in this balance sheet item primarily because it is not considered a part of ongoing net cash provided by operating activities when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted Free Cash Flow. Interest Paid. Cvent excludes these cash payments primarily because it is not considered a part of ongoing net cash provided by operating activities when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted Free Cash Flow. Forward-Looking Statements Certain statements in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, and you can often identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “target,” “projects,” “forecasts,” “shall,” “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this release are based upon Cvent’s historical performance and on its current plans, operating budgets, estimates and expectations in light of information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks, uncertainties, assumptions and factors that could cause actual results to differ materially from those anticipated, including, but not limited to: the risk that trends stated or implied by this release cannot or will not be sustained at the current pace or may fluctuate from current expectations, including trends and expectations related to revenue, revenue growth, net loss, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow margin, gross profit, gross margin, expenses, deferred revenue, interest expense,the demand for events and meetings, the return to in-person events, demand for advertising and software solutions, and demand for an integrated platform; the impact of current global events and macroeconomic conditions on customer’s demand for our products and services, Cvent’s operations, financial results and on Cvent’s virtual, hybrid and in-person offerings; Cvent’s ability to retain, engage, and upsell current customers and attract and retain new customers; Cvent’s ability to maintain and expand relationships with hotels and venues; the competitiveness of the market in which Cvent operates and Cvent’s ability to maintain and increase its market position; Cvent’s ability to attract and retain key employees, including its senior management team; the impact of a disruption of Cvent’s operations, infrastructure or systems, or disruption of the operations, infrastructure or systems of the third parties on which Cvent relies; Cvent’s ability to manage its costs and growth effectively; Cvent’s ability to develop, introduce and market new and enhanced versions of its solutions to meet customer needs and expectations; the risk that the industry does not get back to a normalized state when and as expected; the risk that the proposed merger with Blackstone may not be completed in a timely manner or at all, which may adversely affect Cvent’s business and the price of Cvent’s common stock; the effect of the announcement or pendency of the proposed transaction on Cvent’s business relationships, operating results and business generally; risks that the proposed transaction disrupts Cvent’s current plans and operations; and other factors beyond our control. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements as well as other cautionary statements that are made from time to time in our other SEC filings and public communications, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, including in the “Risk Factors” section of those filings. Actual results may differ materially. Investors should evaluate all forward-looking statements in the context of these risks and uncertainties. The forward-looking statements included herein are made only as of the date hereof, based on current estimates, expectations, observations and trends. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. CVENT HOLDING CORP. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) As of December 31, 2022 2021 Assets Current assets: Cash and cash equivalents $ 99,108 $ 126,526 Restricted cash 815 103 Short-term investments 40,925 538 Accounts receivable, net of allowance of $2.6 million and $4.5 million, respectively 120,362 112,251 Capitalized commission, net 26,685 25,393 Prepaid expenses and other current assets 17,819 20,376 Total current assets 305,714 285,187 Property and equipment, net 15,250 15,334 Capitalized software development costs, net 96,959 108,851 Intangible assets, net 172,781 221,371 Goodwill 1,620,312 1,617,880 Operating lease right-of-use assets 20,398 28,370 Capitalized commission, non-current, net 23,477 22,999 Deferred tax assets, non-current 2,425 2,403 Other assets, non-current, net 8,617 3,684 Total assets $ 2,265,933 $ 2,306,079 Liabilities and Stockholders’ equity Current liabilities: Current portion of long-term debt $ — $ — Accounts payable 2,147 2,675 Accrued expenses and other current liabilities 82,249 79,827 Fees payable to customers 38,379 24,982 Operating lease liabilities, current 11,070 11,290 Deferred revenue 267,882 239,843 Total current liabilities 401,727 358,617 Deferred tax liabilities, non-current 18,103 16,695 Long-term debt, net 208,000 262,302 Operating lease liabilities, non-current 19,712 30,809 Other liabilities, non-current 7,526 8,200 Total liabilities 655,068 676,623 Commitments and contingencies (Note 15) Stockholders’ equity: Common stock, $0.0001 par value, 1,500,000,000 shares authorized at December 31, 2022 and 2021, respectively; 488,296,792 and 481,121,695 shares issued and outstanding as of December 31, 2022 and 2021, respectively 49 48 Additional paid-in capital 2,571,424 2,483,761 Accumulated other comprehensive loss (8,731 ) (2,746 ) Accumulated deficit (951,877 ) (851,607 ) Total stockholders’ equity 1,610,865 1,629,456 Total liabilities and stockholders’ equity $ 2,265,933 $ 2,306,079 CVENT HOLDING CORP. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share data) (unaudited) Three Months Ended Year Ended December 31, 2022 2021 2022 2021 Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Cost of revenue 63,082 50,969 247,854 191,448 Gross profit 107,836 93,683 382,704 327,363 Operating expenses: Sales and marketing 45,172 36,547 176,959 135,616 Research and development 31,854 24,611 130,620 96,627 General and administrative 26,911 24,494 102,544 88,206 Intangible asset amortization, exclusive of amounts included in cost of revenue 12,153 12,757 48,637 51,478 Total operating expenses 116,090 98,409 458,760 371,927 Loss from operations (8,254 ) (4,726 ) (76,056 ) (44,564 ) Interest expense (2,811 ) (6,356 ) (9,865 ) (29,073 ) Amortization of deferred financing costs and debt discount (157 ) (783 ) (891 ) (3,606 ) Loss on extinguishment of debt - (7,159 ) (3,219 ) (7,159 ) Other income/(expense), net (843 ) (771 ) 1,135 5,367 Loss before income taxes (12,065 ) (19,795 ) (88,896 ) (79,035 ) Provision for/(benefit from) income taxes 7,082 1,750 11,374 7,044 Net loss (19,147 ) (21,545 ) (100,270 ) (86,079 ) Other comprehensive income/(loss): Foreign currency translation (loss)/gain 5,632 (446 ) (5,985 ) (2,793 ) Comprehensive loss $ (13,515 ) $ (21,991 ) $ (106,255 ) $ (88,872 ) Basic and Diluted net loss per common share $ (0.04 ) $ (0.05 ) $ (0.21 ) $ (0.20 ) Basic and Diluted weighted-average common shares outstanding 485,772,963 433,345,289 483,047,301 420,692,510 CVENT HOLDING CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Operating activities: Net loss $ (19,147 ) $ (21,545 ) $ (100,270 ) $ (86,079 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 30,930 31,205 122,141 124,347 Amortization of the right-of-use assets 2,032 1,546 7,972 8,363 Allowance for expected credit losses, net 938 2,767 1,316 8,316 Amortization of deferred financing costs and debt discount 157 783 891 3,606 Amortization of capitalized commission 8,278 7,712 32,029 29,280 Unrealized foreign currency transaction loss (149 ) 134 491 153 Loss on extinguishment of debt — 7,159 3,219 7,159 Stock-based compensation 19,070 8,245 65,078 25,056 Change in deferred taxes 1,223 (1,909 ) 1,215 (596 ) Change in operating assets and liabilities, net of business combinations: Accounts receivable (44,424 ) (32,645 ) (10,214 ) 19,966 Prepaid expenses and other assets 3,283 (733 ) 2,360 (6,797 ) Capitalized commission, net (7,847 ) (6,929 ) (35,571 ) (33,635 ) Accounts payable, accrued expenses and other liabilities (29,155 ) (7,036 ) 16,456 1,961 Operating lease liability (2,888 ) (2,267 ) (11,317 ) (11,933 ) Deferred revenue 20,680 14,151 28,339 33,029 Net cash provided by operating activities (17,019 ) 638 124,135 122,196 Investing activities: Purchase of property and equipment (1,185 ) (1,907 ) (6,890 ) (4,675 ) Capitalized software development costs (12,659 ) (10,706 ) (51,072 ) (40,978 ) Purchase of investments (48,067 ) (4,292 ) (93,231 ) (35,727 ) Maturities of investments 5,532 6,450 48,380 35,189 Acquisitions, net of cash acquired (26 ) — (3,578 ) (14,769 ) Proceeds from divestiture — — 135 122 Net cash used in investing activities (56,405 ) (10,455 ) (106,256 ) (60,838 ) Financing activities: Proceeds from Reverse Recapitalization Transaction — 552,693 — 552,693 Payment of offering costs — (30,760 ) — (30,760 ) Principal repayments on first lien term loan — (500,000 ) (265,696 ) (505,951 ) Principal repayments of revolving credit facility (37,000 ) — (157,000 ) (13,400 ) Proceeds from revolving credit facility 80,000 — 365,000 — Payment of debt issuance costs — — (3,141 ) — Proceeds from exercise of stock options 9,237 — 17,059 522 Proceeds from Employee Stock Purchase Plan 3,957 — 3,957 — Repurchase of Common stock — (173 ) — (230 ) Payments of tax withholdings on vesting of restricted stock units — — (31 ) — Net cash provided by financing activities 56,194 21,760 (39,852 ) 2,874 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 6,658 (823 ) (4,733 ) (3,073 ) Change in cash, cash equivalents, and restricted cash (10,572 ) 11,120 (26,706 ) 61,159 Cash, cash equivalents, and restricted cash, beginning of period 110,495 115,509 126,629 65,470 Cash, cash equivalents, and restricted cash, end of period $ 99,923 $ 126,629 $ 99,923 $ 126,629 Supplemental cash flow information: Interest paid $ 2,391 $ 6,335 $ 9,346 $ 29,056 Income taxes paid $ 3,491 $ 755 $ 8,668 $ 5,410 Supplemental disclosure of non-cash investing and financing activities: Outstanding payments for purchase of property and equipment at period end $ 1,157 $ 223 $ 1,484 $ 554 Outstanding payments for capitalized software development costs at period end $ 23 $ 235 $ 1,006 $ 748 RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except share amounts and share counts) (unaudited) Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP Gross Profit: Gross Profit $ 107,836 $ 93,683 $ 382,704 $ 327,363 Adjustments Depreciation 343 592 1,820 3,363 Amortization of software development costs 16,843 15,607 66,024 61,344 Intangible asset amortization - - - 180 Stock-based compensation expense 2,267 460 7,025 1,410 Restructuring expense - 8 10 19 Cost related to acquisitions - 1 - 12 Other items (2 ) (452 ) (388 ) (1,446 ) Non-GAAP Gross Profit $ 127,287 $ 109,899 $ 457,195 $ 392,245 Gross Margin: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Gross Margin 63.1 % 64.8 % 60.7 % 63.1 % Non-GAAP Gross Margin 74.5 % 76.0 % 72.5 % 75.6 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP Sales & Marketing Expenses: Sales & marketing $ 45,172 $ 36,547 $ 176,959 $ 135,616 Adjustments Depreciation (170 ) (188 ) (680 ) (1,320 ) Stock-based compensation expense (6,345 ) (2,472 ) (21,904 ) (7,843 ) Restructuring expense (4 ) (35 ) (56 ) (107 ) Cost related to acquisitions - (533 ) (10 ) (650 ) Other items 4 138 136 518 Non-GAAP Sales & Marketing Expenses $ 38,657 $ 33,457 $ 154,445 $ 126,214 Sales & Marketing Expenses as a Percent of Revenue: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Sales & marketing expenses 26.4 % 25.3 % 28.1 % 26.1 % Non-GAAP sales & marketing expenses 22.6 % 23.1 % 24.5 % 24.3 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP Research & Development Expenses: Research & development $ 31,854 $ 24,611 $ 130,620 $ 96,627 Adjustments Depreciation (220 ) (296 ) (900 ) (1,727 ) Stock-based compensation expense (5,071 ) (2,126 ) (16,860 ) (6,447 ) Restructuring expense (15 ) (48 ) (24 ) (115 ) Cost related to acquisitions - (45 ) - (54 ) Other items - 1,660 1,505 5,026 Non-GAAP Research & Development Expenses $ 26,548 $ 23,756 $ 114,341 $ 93,310 Research & Development Expenses as a Percent of Revenue: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Research & development expenses 18.6 % 17.0 % 20.7 % 18.6 % Non-GAAP research & development expenses 15.5 % 16.4 % 18.1 % 18.0 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP General & Administrative Expenses: General & administrative $ 26,911 $ 24,494 $ 102,544 $ 88,206 Adjustments Depreciation (907 ) (837 ) (3,981 ) (3,980 ) Stock-based compensation expense (5,386 ) (3,187 ) (19,288 ) (9,357 ) Restructuring expense (261 ) (377 ) (950 ) (2,003 ) Cost related to acquisitions (1,103 ) 233 (1,770 ) (875 ) Other items (713 ) (462 ) (1,551 ) (2,947 ) Non-GAAP General & Administrative Expenses $ 18,541 $ 19,864 $ 75,004 $ 69,044 General & Administrative Expenses as a Percent of Revenue: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 General & administrative expenses 15.7 % 16.9 % 16.3 % 17.0 % Non-GAAP general & administrative expenses 10.8 % 13.7 % 11.9 % 13.3 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Adjusted EBITDA Net loss $ (19,147 ) $ (21,545 ) $ (100,270 ) $ (86,079 ) Adjustments Interest expense 2,811 6,356 9,865 29,073 Amortization of deferred financing costs and debt discount 157 783 891 3,606 Loss on extinguishment of debt - 7,159 3,219 7,159 Other income, net 843 771 (1,135 ) (5,367 ) Provision for/(benefit from) income taxes 7,082 1,750 11,374 7,044 Depreciation 1,640 1,911 7,380 10,389 Amortization of software development costs 16,843 15,607 66,024 61,524 Intangible asset amortization 12,153 12,757 48,637 51,478 Stock-based compensation expense 19,070 8,245 65,078 25,056 Restructuring expense 281 468 1,040 2,245 Cost related to acquisitions 1,103 346 1,779 1,591 Other items 707 (1,788 ) (477 ) (4,043 ) Adjusted EBITDA $ 43,543 $ 32,820 $ 113,405 $ 103,676 Adjusted EBITDA margin Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Net loss margin (11.2 )% (14.9 )% (15.9 )% (16.6 )% Adjusted EBITDA margin 25.5 % 22.7 % 18.0 % 20.0 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) (in thousands) Adjusted Free Cash Flow: Net cash provided by operating activities: $ (17,019 ) $ 638 $ 124,135 $ 122,196 Adjustments Purchase of property and equipment (1,185 ) (1,907 ) (6,890 ) (4,675 ) Capitalized software development costs (12,659 ) (10,706 ) (51,072 ) (40,978 ) Change in fees payable to customers 26,122 5,768 (13,397 ) (8,110 ) Interest paid 2,391 6,335 9,346 29,056 Adjusted Free Cash Flow $ (2,350 ) $ 128 $ 62,122 $ 97,489 Adjusted Free Cash Flow margin Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Adjusted Free Cash Flow margin (1.4 )% 0.1 % 9.9 % 18.8 % View source version on businesswire.com: https://www.businesswire.com/news/home/20230314005638/en/Contacts Investor Contact CventIR@icrinc.com Media Contact Erica Stoltenberg estoltenberg@cvent.com (571) 378-6240
Cvent Holding Corp. (“Cvent”) (Nasdaq: CVT), an industry-leading meetings, events and hospitality technology provider, today announced financial results for the fourth quarter and full fiscal year ended December 31, 2022. Fourth Quarter 2022 Financial Highlights Revenue Total revenue was $170.9 million for the fourth quarter of 2022, an increase of 18.2% from the comparable period in 2021, and $0.6 million higher than the high end of our guidance. Event Cloud revenue was $120.6 million for the fourth quarter of 2022, an increase of 17.2% from the comparable period in 2021. Hospitality Cloud revenue was $50.3 million for the fourth quarter of 2022, an increase of 20.5% from the comparable period in 2021. Net Loss and Adjusted EBITDA Net loss was $19.1 million for the fourth quarter of 2022 compared to $21.5 million in the comparable period in 2021. Adjusted EBITDA (defined below) was $43.5 million for the fourth quarter of 2022, which was $3.7 million higher than the high end of our guidance. Adjusted EBITDA margin (defined below) was 25.5% compared to the high end of our guidance of 23.4%. Adjusted EBITDA in the comparable period of 2021 was $32.8 million, with an Adjusted EBITDA margin of 22.7%. Fiscal Year 2022 Financial Highlights Revenue Total revenue was $630.6 million for the fiscal year 2022, an increase of 21.5% from the comparable period in 2021, and $0.7 million higher than the high end of our guidance. Event Cloud revenue was $441.1 million for the fiscal year 2022, an increase of 21.8% from the comparable period in 2021. Hospitality Cloud revenue was $189.5 million for the fiscal year 2022, an increase of 20.9% from the comparable period in 2021. Net Loss and Adjusted EBITDA Net loss was $100.3 million for the fiscal year 2022 compared to $86.1 million in the comparable period in 2021. Adjusted EBITDA (defined below) was $113.4 million for the fiscal year 2022, which was $3.7 million higher than the high end of our guidance, and Adjusted EBITDA margin (defined below) was 18.0% compared to the high end of our guidance of 17.4%. Adjusted EBITDA in the comparable period of 2021 was $103.7 million, with an Adjusted EBITDA margin of 20.0%. Cash, Cash Equivalents and Short-Term Investments Cash, cash equivalents and short-term investments as of December 31, 2022 totaled $140.0 million, compared to $127.1 million as of December 31, 2021. Reconciliation of Adjusted EBITDA and Adjusted EBITDA margin results to their GAAP basis results are shown in detail below. Guidance Given Cvent’s entry into a definitive agreement on March 14, 2023 to be acquired by an affiliate of private equity funds managed by Blackstone (“Blackstone”), the Company will not provide guidance for first quarter and full year 2023. Conference Call Information Given Cvent’s entry into a definitive agreement on March 14, 2023 to be acquired by Blackstone, the Company will not host a conference call to discuss its fourth quarter and full year 2022 financial results and outlook. About Cvent Cvent Holding Corp. (Nasdaq: CVT) is a leading meetings, events, and hospitality technology provider with approximately 4,900 employees and approximately 22,000 customers worldwide as of December 31, 2022. Founded in 1999, the company delivers a comprehensive event marketing and management platform and offers a global marketplace where event professionals collaborate with venues to create engaging, impactful experiences. Cvent is headquartered in Tysons, Virginia, just outside of Washington D.C., and has additional offices around the world to support its growing global customer base. The comprehensive Cvent event marketing and management platform offers software solutions to event organizers and marketers for online event registration, venue selection, event marketing and management, virtual and onsite solutions, and attendee engagement. Cvent’s suite of products automate and simplify the event management lifecycle and maximize the impact of in-person, virtual, and hybrid events. Hotels and venues use Cvent’s supplier and venue solutions to win more group and corporate travel business through Cvent’s sourcing platforms. Cvent solutions optimize the event management value chain and have enabled clients around the world to manage millions of meetings and events. For more information, please visit Cvent.com. From time to time, we plan to utilize our investor relations website, investors.cvent.com, as a channel of distribution for material company information. Non-GAAP Financial Measures This earnings press release uses and discusses the following financial measures not presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”): Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses, Adjusted EBITDA and Adjusted Free Cash Flow, and certain ratios and other metrics derived therefrom, including Adjusted EBITDA margin which represents Adjusted EBITDA divided by revenue and Non-GAAP gross margin which represents Non-GAAP Gross Profit divided by revenue. Reconciliation of these non-GAAP financial measures to their GAAP basis results can be found within the tables included in this release. We believe that these non-GAAP measures of financial results provide useful information to management and investors regarding certain financial and business trends relating to Cvent’s financial condition and results of operations. We use these non-GAAP measures for financial, operational and budgetary decision-making purposes, and to compare our performance to that of prior periods for trend analyses. We believe that these non-GAAP financial measures provide useful information regarding past financial performance and future prospects, and permit us to more thoroughly analyze key financial metrics used to make operational decisions. We believe that the use of these non-GAAP financial measures provides an additional tool for investors to use in evaluating ongoing operating results and trends and in comparing our financial measures with other software companies, many of which present similar non-GAAP financial measures to investors. We do not consider these non-GAAP measures in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of these non-GAAP financial measures is that they exclude significant expenses and income that are required by GAAP to be recorded in Cvent’s financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by management about which expenses and income are excluded or included in determining these non-GAAP financial measures. In order to compensate for these limitations, management presents non-GAAP financial measures in connection with GAAP results. We urge investors to review the reconciliation of our non-GAAP financial measures to the comparable GAAP financial measures, which are included in this press release, and not to rely on any single financial measure to evaluate our business. Cvent excludes or adjusts for one or more of the following items from these non-GAAP financial measures: Interest expense. Cvent excludes this expense from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Other income, net. Cvent excludes this item, which is comprised primarily of foreign exchange gains/(losses) and state tax settlements, from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Provision for income taxes. Cvent excludes this item from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Amortization of deferred financing costs and debt discount. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Intangible asset amortization. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit and Adjusted EBITDA. Amortization of software development costs. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit and Adjusted EBITDA. Stock-based compensation expense. Cvent excludes this expense primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Cost related to acquisitions. Cost related to acquisitions is comprised of the value of contingent payments included in compensation expense which relate to the potential cash payment to certain employees of acquired companies whose right to receive such payment is forfeited if they terminate their employment prior to the required service period. As the contingent payments are subject to continued employment, GAAP requires that these payments be accounted for as compensation expense and such expense is subject to revaluation. Additionally, cost related to acquisitions includes expenses related to performing due diligence, valuation, earnouts or other acquisition-related activities. Cvent excludes these expenses primarily because they are not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Restructuring expenses. Cvent excludes this expense, which is comprised of expenses associated with severance to terminated employees of acquired entities, retention bonuses to employees retained from acquired entities, costs to discontinue use of a back-office system and closing of certain office spaces, primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Other items. Cvent excludes this item, which is comprised of certain expenses associated with prosecuting a trade secret misappropriation claim and credit facility fees, net of the gain from government subsidies related to the global COVID-19 pandemic, primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Non-GAAP Gross Profit, Non-GAAP Sales and Marketing Expenses, Non-GAAP Research and Development Expenses, Non-GAAP General and Administrative Expenses and Adjusted EBITDA. Loss on extinguishment of debt. Cvent excludes this expense from its non-GAAP financial measures primarily because it is not considered a part of ongoing operating results when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted EBITDA. Purchases of Property and Equipment. This item is customarily included as a reduction to net cash provided by operating activities in the calculation of free cash flow. This item is reflected in Adjusted Free Cash Flow. Capitalized Software Development Costs. This item is customarily included as a reduction to net cash provided by operating activities in the calculation of free cash flow. This item is reflected in Adjusted Free Cash Flow. Change in Fees Payable to Customers. Cvent excludes the change in this balance sheet item primarily because it is not considered a part of ongoing net cash provided by operating activities when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted Free Cash Flow. Interest Paid. Cvent excludes these cash payments primarily because it is not considered a part of ongoing net cash provided by operating activities when assessing the performance of our business, and Cvent believes that doing so facilitates comparisons to its historical operating results and to the results of other companies in our industry. This adjustment is reflected in Adjusted Free Cash Flow. Forward-Looking Statements Certain statements in this press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 that involve substantial risks and uncertainties. These statements can be identified by the fact that they do not relate strictly to historical or current facts, and you can often identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “could,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “target,” “projects,” “forecasts,” “shall,” “contemplates” or the negative version of those words or other comparable words. Any forward-looking statements contained in this release are based upon Cvent’s historical performance and on its current plans, operating budgets, estimates and expectations in light of information currently available to us. The inclusion of this forward-looking information should not be regarded as a representation by us that the future plans, estimates or expectations contemplated by us will be achieved. Such forward-looking statements are subject to various risks, uncertainties, assumptions and factors that could cause actual results to differ materially from those anticipated, including, but not limited to: the risk that trends stated or implied by this release cannot or will not be sustained at the current pace or may fluctuate from current expectations, including trends and expectations related to revenue, revenue growth, net loss, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow, Adjusted Free Cash Flow margin, gross profit, gross margin, expenses, deferred revenue, interest expense,the demand for events and meetings, the return to in-person events, demand for advertising and software solutions, and demand for an integrated platform; the impact of current global events and macroeconomic conditions on customer’s demand for our products and services, Cvent’s operations, financial results and on Cvent’s virtual, hybrid and in-person offerings; Cvent’s ability to retain, engage, and upsell current customers and attract and retain new customers; Cvent’s ability to maintain and expand relationships with hotels and venues; the competitiveness of the market in which Cvent operates and Cvent’s ability to maintain and increase its market position; Cvent’s ability to attract and retain key employees, including its senior management team; the impact of a disruption of Cvent’s operations, infrastructure or systems, or disruption of the operations, infrastructure or systems of the third parties on which Cvent relies; Cvent’s ability to manage its costs and growth effectively; Cvent’s ability to develop, introduce and market new and enhanced versions of its solutions to meet customer needs and expectations; the risk that the industry does not get back to a normalized state when and as expected; the risk that the proposed merger with Blackstone may not be completed in a timely manner or at all, which may adversely affect Cvent’s business and the price of Cvent’s common stock; the effect of the announcement or pendency of the proposed transaction on Cvent’s business relationships, operating results and business generally; risks that the proposed transaction disrupts Cvent’s current plans and operations; and other factors beyond our control. We derive many of our forward-looking statements from our operating budgets and forecasts, which are based on many detailed assumptions. While we believe that our assumptions are reasonable, we caution that it is very difficult to predict the impact of known factors, and it is impossible for us to anticipate all factors that could affect our actual results. All written and oral forward-looking statements attributable to us, or persons acting on our behalf, are expressly qualified in their entirety by these cautionary statements as well as other cautionary statements that are made from time to time in our other SEC filings and public communications, including our most recent Annual Report on Form 10-K and Quarterly Report on Form 10-Q, including in the “Risk Factors” section of those filings. Actual results may differ materially. Investors should evaluate all forward-looking statements in the context of these risks and uncertainties. The forward-looking statements included herein are made only as of the date hereof, based on current estimates, expectations, observations and trends. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as otherwise required by law. CVENT HOLDING CORP. CONSOLIDATED BALANCE SHEETS (in thousands, except share and per share data) As of December 31, 2022 2021 Assets Current assets: Cash and cash equivalents $ 99,108 $ 126,526 Restricted cash 815 103 Short-term investments 40,925 538 Accounts receivable, net of allowance of $2.6 million and $4.5 million, respectively 120,362 112,251 Capitalized commission, net 26,685 25,393 Prepaid expenses and other current assets 17,819 20,376 Total current assets 305,714 285,187 Property and equipment, net 15,250 15,334 Capitalized software development costs, net 96,959 108,851 Intangible assets, net 172,781 221,371 Goodwill 1,620,312 1,617,880 Operating lease right-of-use assets 20,398 28,370 Capitalized commission, non-current, net 23,477 22,999 Deferred tax assets, non-current 2,425 2,403 Other assets, non-current, net 8,617 3,684 Total assets $ 2,265,933 $ 2,306,079 Liabilities and Stockholders’ equity Current liabilities: Current portion of long-term debt $ — $ — Accounts payable 2,147 2,675 Accrued expenses and other current liabilities 82,249 79,827 Fees payable to customers 38,379 24,982 Operating lease liabilities, current 11,070 11,290 Deferred revenue 267,882 239,843 Total current liabilities 401,727 358,617 Deferred tax liabilities, non-current 18,103 16,695 Long-term debt, net 208,000 262,302 Operating lease liabilities, non-current 19,712 30,809 Other liabilities, non-current 7,526 8,200 Total liabilities 655,068 676,623 Commitments and contingencies (Note 15) Stockholders’ equity: Common stock, $0.0001 par value, 1,500,000,000 shares authorized at December 31, 2022 and 2021, respectively; 488,296,792 and 481,121,695 shares issued and outstanding as of December 31, 2022 and 2021, respectively 49 48 Additional paid-in capital 2,571,424 2,483,761 Accumulated other comprehensive loss (8,731 ) (2,746 ) Accumulated deficit (951,877 ) (851,607 ) Total stockholders’ equity 1,610,865 1,629,456 Total liabilities and stockholders’ equity $ 2,265,933 $ 2,306,079 CVENT HOLDING CORP. CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (in thousands, except share and per share data) (unaudited) Three Months Ended Year Ended December 31, 2022 2021 2022 2021 Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Cost of revenue 63,082 50,969 247,854 191,448 Gross profit 107,836 93,683 382,704 327,363 Operating expenses: Sales and marketing 45,172 36,547 176,959 135,616 Research and development 31,854 24,611 130,620 96,627 General and administrative 26,911 24,494 102,544 88,206 Intangible asset amortization, exclusive of amounts included in cost of revenue 12,153 12,757 48,637 51,478 Total operating expenses 116,090 98,409 458,760 371,927 Loss from operations (8,254 ) (4,726 ) (76,056 ) (44,564 ) Interest expense (2,811 ) (6,356 ) (9,865 ) (29,073 ) Amortization of deferred financing costs and debt discount (157 ) (783 ) (891 ) (3,606 ) Loss on extinguishment of debt - (7,159 ) (3,219 ) (7,159 ) Other income/(expense), net (843 ) (771 ) 1,135 5,367 Loss before income taxes (12,065 ) (19,795 ) (88,896 ) (79,035 ) Provision for/(benefit from) income taxes 7,082 1,750 11,374 7,044 Net loss (19,147 ) (21,545 ) (100,270 ) (86,079 ) Other comprehensive income/(loss): Foreign currency translation (loss)/gain 5,632 (446 ) (5,985 ) (2,793 ) Comprehensive loss $ (13,515 ) $ (21,991 ) $ (106,255 ) $ (88,872 ) Basic and Diluted net loss per common share $ (0.04 ) $ (0.05 ) $ (0.21 ) $ (0.20 ) Basic and Diluted weighted-average common shares outstanding 485,772,963 433,345,289 483,047,301 420,692,510 CVENT HOLDING CORP. CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited) Three Months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 Operating activities: Net loss $ (19,147 ) $ (21,545 ) $ (100,270 ) $ (86,079 ) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 30,930 31,205 122,141 124,347 Amortization of the right-of-use assets 2,032 1,546 7,972 8,363 Allowance for expected credit losses, net 938 2,767 1,316 8,316 Amortization of deferred financing costs and debt discount 157 783 891 3,606 Amortization of capitalized commission 8,278 7,712 32,029 29,280 Unrealized foreign currency transaction loss (149 ) 134 491 153 Loss on extinguishment of debt — 7,159 3,219 7,159 Stock-based compensation 19,070 8,245 65,078 25,056 Change in deferred taxes 1,223 (1,909 ) 1,215 (596 ) Change in operating assets and liabilities, net of business combinations: Accounts receivable (44,424 ) (32,645 ) (10,214 ) 19,966 Prepaid expenses and other assets 3,283 (733 ) 2,360 (6,797 ) Capitalized commission, net (7,847 ) (6,929 ) (35,571 ) (33,635 ) Accounts payable, accrued expenses and other liabilities (29,155 ) (7,036 ) 16,456 1,961 Operating lease liability (2,888 ) (2,267 ) (11,317 ) (11,933 ) Deferred revenue 20,680 14,151 28,339 33,029 Net cash provided by operating activities (17,019 ) 638 124,135 122,196 Investing activities: Purchase of property and equipment (1,185 ) (1,907 ) (6,890 ) (4,675 ) Capitalized software development costs (12,659 ) (10,706 ) (51,072 ) (40,978 ) Purchase of investments (48,067 ) (4,292 ) (93,231 ) (35,727 ) Maturities of investments 5,532 6,450 48,380 35,189 Acquisitions, net of cash acquired (26 ) — (3,578 ) (14,769 ) Proceeds from divestiture — — 135 122 Net cash used in investing activities (56,405 ) (10,455 ) (106,256 ) (60,838 ) Financing activities: Proceeds from Reverse Recapitalization Transaction — 552,693 — 552,693 Payment of offering costs — (30,760 ) — (30,760 ) Principal repayments on first lien term loan — (500,000 ) (265,696 ) (505,951 ) Principal repayments of revolving credit facility (37,000 ) — (157,000 ) (13,400 ) Proceeds from revolving credit facility 80,000 — 365,000 — Payment of debt issuance costs — — (3,141 ) — Proceeds from exercise of stock options 9,237 — 17,059 522 Proceeds from Employee Stock Purchase Plan 3,957 — 3,957 — Repurchase of Common stock — (173 ) — (230 ) Payments of tax withholdings on vesting of restricted stock units — — (31 ) — Net cash provided by financing activities 56,194 21,760 (39,852 ) 2,874 Effect of exchange rate changes on cash, cash equivalents, and restricted cash 6,658 (823 ) (4,733 ) (3,073 ) Change in cash, cash equivalents, and restricted cash (10,572 ) 11,120 (26,706 ) 61,159 Cash, cash equivalents, and restricted cash, beginning of period 110,495 115,509 126,629 65,470 Cash, cash equivalents, and restricted cash, end of period $ 99,923 $ 126,629 $ 99,923 $ 126,629 Supplemental cash flow information: Interest paid $ 2,391 $ 6,335 $ 9,346 $ 29,056 Income taxes paid $ 3,491 $ 755 $ 8,668 $ 5,410 Supplemental disclosure of non-cash investing and financing activities: Outstanding payments for purchase of property and equipment at period end $ 1,157 $ 223 $ 1,484 $ 554 Outstanding payments for capitalized software development costs at period end $ 23 $ 235 $ 1,006 $ 748 RECONCILIATION OF GAAP MEASURES TO NON-GAAP MEASURES (in thousands, except share amounts and share counts) (unaudited) Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP Gross Profit: Gross Profit $ 107,836 $ 93,683 $ 382,704 $ 327,363 Adjustments Depreciation 343 592 1,820 3,363 Amortization of software development costs 16,843 15,607 66,024 61,344 Intangible asset amortization - - - 180 Stock-based compensation expense 2,267 460 7,025 1,410 Restructuring expense - 8 10 19 Cost related to acquisitions - 1 - 12 Other items (2 ) (452 ) (388 ) (1,446 ) Non-GAAP Gross Profit $ 127,287 $ 109,899 $ 457,195 $ 392,245 Gross Margin: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Gross Margin 63.1 % 64.8 % 60.7 % 63.1 % Non-GAAP Gross Margin 74.5 % 76.0 % 72.5 % 75.6 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP Sales & Marketing Expenses: Sales & marketing $ 45,172 $ 36,547 $ 176,959 $ 135,616 Adjustments Depreciation (170 ) (188 ) (680 ) (1,320 ) Stock-based compensation expense (6,345 ) (2,472 ) (21,904 ) (7,843 ) Restructuring expense (4 ) (35 ) (56 ) (107 ) Cost related to acquisitions - (533 ) (10 ) (650 ) Other items 4 138 136 518 Non-GAAP Sales & Marketing Expenses $ 38,657 $ 33,457 $ 154,445 $ 126,214 Sales & Marketing Expenses as a Percent of Revenue: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Sales & marketing expenses 26.4 % 25.3 % 28.1 % 26.1 % Non-GAAP sales & marketing expenses 22.6 % 23.1 % 24.5 % 24.3 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP Research & Development Expenses: Research & development $ 31,854 $ 24,611 $ 130,620 $ 96,627 Adjustments Depreciation (220 ) (296 ) (900 ) (1,727 ) Stock-based compensation expense (5,071 ) (2,126 ) (16,860 ) (6,447 ) Restructuring expense (15 ) (48 ) (24 ) (115 ) Cost related to acquisitions - (45 ) - (54 ) Other items - 1,660 1,505 5,026 Non-GAAP Research & Development Expenses $ 26,548 $ 23,756 $ 114,341 $ 93,310 Research & Development Expenses as a Percent of Revenue: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Research & development expenses 18.6 % 17.0 % 20.7 % 18.6 % Non-GAAP research & development expenses 15.5 % 16.4 % 18.1 % 18.0 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Non-GAAP General & Administrative Expenses: General & administrative $ 26,911 $ 24,494 $ 102,544 $ 88,206 Adjustments Depreciation (907 ) (837 ) (3,981 ) (3,980 ) Stock-based compensation expense (5,386 ) (3,187 ) (19,288 ) (9,357 ) Restructuring expense (261 ) (377 ) (950 ) (2,003 ) Cost related to acquisitions (1,103 ) 233 (1,770 ) (875 ) Other items (713 ) (462 ) (1,551 ) (2,947 ) Non-GAAP General & Administrative Expenses $ 18,541 $ 19,864 $ 75,004 $ 69,044 General & Administrative Expenses as a Percent of Revenue: Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 General & administrative expenses 15.7 % 16.9 % 16.3 % 17.0 % Non-GAAP general & administrative expenses 10.8 % 13.7 % 11.9 % 13.3 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) Adjusted EBITDA Net loss $ (19,147 ) $ (21,545 ) $ (100,270 ) $ (86,079 ) Adjustments Interest expense 2,811 6,356 9,865 29,073 Amortization of deferred financing costs and debt discount 157 783 891 3,606 Loss on extinguishment of debt - 7,159 3,219 7,159 Other income, net 843 771 (1,135 ) (5,367 ) Provision for/(benefit from) income taxes 7,082 1,750 11,374 7,044 Depreciation 1,640 1,911 7,380 10,389 Amortization of software development costs 16,843 15,607 66,024 61,524 Intangible asset amortization 12,153 12,757 48,637 51,478 Stock-based compensation expense 19,070 8,245 65,078 25,056 Restructuring expense 281 468 1,040 2,245 Cost related to acquisitions 1,103 346 1,779 1,591 Other items 707 (1,788 ) (477 ) (4,043 ) Adjusted EBITDA $ 43,543 $ 32,820 $ 113,405 $ 103,676 Adjusted EBITDA margin Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Net loss margin (11.2 )% (14.9 )% (15.9 )% (16.6 )% Adjusted EBITDA margin 25.5 % 22.7 % 18.0 % 20.0 % Three months Ended December 31, Year Ended December 31, 2022 2021 2022 2021 (in thousands) (in thousands) Adjusted Free Cash Flow: Net cash provided by operating activities: $ (17,019 ) $ 638 $ 124,135 $ 122,196 Adjustments Purchase of property and equipment (1,185 ) (1,907 ) (6,890 ) (4,675 ) Capitalized software development costs (12,659 ) (10,706 ) (51,072 ) (40,978 ) Change in fees payable to customers 26,122 5,768 (13,397 ) (8,110 ) Interest paid 2,391 6,335 9,346 29,056 Adjusted Free Cash Flow $ (2,350 ) $ 128 $ 62,122 $ 97,489 Adjusted Free Cash Flow margin Revenue $ 170,918 $ 144,652 $ 630,558 $ 518,811 Adjusted Free Cash Flow margin (1.4 )% 0.1 % 9.9 % 18.8 % View source version on businesswire.com: https://www.businesswire.com/news/home/20230314005638/en/
Investor Contact CventIR@icrinc.com Media Contact Erica Stoltenberg estoltenberg@cvent.com (571) 378-6240
