mindtalks brand growth: Momentive Announces First Quarter 2022 Financial Results – GlobeNewswire – picked by mindtalks

Increased Sales-Assisted Channel Revenue 32% Year-over-Year

Repurchased 2.4 Million Shares in Q1 for $36.4 Million

Made Substantial Progress on Strategic Changes Announced in February

SAN MATEO, Calif., May 04, 2022 (GLOBE NEWSWIRE) — Momentive (NASDAQ: MNTV), a leader in agile experience management, today reported first quarter results for the period ended March 31, 2022.

“The team rose above the noise over the last few months. We exceeded the high-end of our revenue and profitability guidance ranges and made substantial progress on the strategic changes we outlined in our February 28th stockholder letter,” said Zander Lurie, chief executive officer of Momentive. “Our full-year 2022 guidance illustrates our commitment to driving profitable growth, and our share repurchase activity signals our confidence in our ability to execute.”

Q1 2022 Key Results

  • Total revenue was $117.0 million, an increase of 14% year-over-year.
  • Sales-assisted channel revenue was $41.2 million, an increase of 32% year-over year. Sales-assisted channel revenue accounted for approximately 35% of total revenue, up from approximately 30% in Q1 2021. We ended the quarter with approximately 13,700 sales-assisted channel customers, up 55% from approximately 8,800 in Q1 2021.
  • Self-serve channel revenue was $75.8 million, an increase of 7% year-over-year.
  • Deferred revenue was $216.2 million, an increase of 15% year-over-year. Remaining performance obligations were $245.4 million, an increase of 20% year-over-year.
  • Paying users1 totaled approximately 894,400, an increase of 6% from approximately 845,800 in Q1 2021. Approximately 91% of our paying users were on annual plans, up from 89% a year ago.
  • Average revenue per user1 was approximately $535, up 7% from approximately $498 in Q1 2021.
  • GAAP operating margin was negative 30.0% and non-GAAP operating margin was 2.3%.
  • GAAP net loss was $37.4 million and GAAP diluted net loss per share was $0.25. Non-GAAP net income was $0.6 million and non-GAAP diluted net income per share was $0.00.
  • Net cash used in operating activities was $4.9 million and free cash flow was negative $7.9 million.
  • Cash and cash equivalents totaled $238.0 million and total debt was $186.2 million for net cash of $51.8 million as of March 31, 2022.

“Q1 was all about focus and execution. We moved with speed to make targeted changes and align resources to the areas of our business with the highest growth potential and return profile,” said Justin Coulombe, chief financial officer of Momentive. “For the remainder of 2022 we’ll build on the same operating discipline and lay the foundation for durable growth, coupled with expanding margins.”

__________________________

1 In Q3 2021, we refined our methodology to more accurately capture the number of paying users, and due to a calculation error, we overstated the number of paying users in Q3 2021 and Q4 2021. The number of paying users for Q3 2021 and Q4 2021 was originally reported as 883,100 and 888,700, respectively, but should have been reported as 877,100 and 879,600, respectively. As a result, we also understated average revenue per user (ARPU) in Q3 2021 and Q4 2021. ARPU for Q3 2021 and Q4 2021 was originally reported as $522 and $526, respectively, but should have been reported as $524 and $530, respectively.   

Stock Repurchase Program Update

On February 28, 2022, Momentive announced its board of directors had authorized a stock repurchase program to repurchase up to $200 million of the company’s common stock in the open market or in privately negotiated transactions (through 10b5-1 trading plans or otherwise). From the announcement of the plan through March 31, 2022, Momentive repurchased approximately 2.4 million shares of common stock for approximately $36.4 million. As part of the program, the company also reduced debt by approximately $25.6 million in the quarter. As of March 31, 2022, the Company’s remaining share repurchase authorization was approximately $163.6 million.

Progress on Strategic Changes

The company has aggressively pursued strategic changes outlined in its February 28 letter to stockholders. Areas of focus include:

  • Customer-centric innovation. We’ve reorganized our R&D organization, centralized our product strategy, and prioritized our roadmap around a focused set of opportunities.
  • Go-to-market strategy. We’ve begun executing on plans to reinvigorate our self-serve channel and align resources to the products and segments that generate the highest returns in our sales-assisted channel. Additionally, we’re simplifying our positioning and web presences under two complementary brands – Momentive and SurveyMonkey. Finally, we’re seeing early success with existing customer expansion, one of our most efficient and profitable go-to-market motions.
  • Leadership and organizational changes. Our streamlined leadership team and organizational structure is leading to faster, higher quality, and customer-centric execution.

Financial Outlook

For the second quarter and full year of 2022, Momentive currently expects the following:

  Q2 2022 FY 2022
Revenue $120 million – $122 million $494 million – $500 million
Non-GAAP operating margin 1% to 3% 6% to 7%
Free cash flow (includes impact of one-time transaction-related and restructuring expenses) NA $24 million – $29 million

As stated above, we expect full-year 2022 free cash flow in the range of $24 to $29 million. Of note, this includes the impact of approximately $27 million in one-time transaction-related and restructuring expenses – a portion of which were accrued as expenses in Q4 2021 but will result in cash outflows in 2022.

For the second quarter of 2022, the company expects basic weighted average shares outstanding to be approximately 150 million and diluted weighted average shares outstanding to be approximately 152 million. For the full year 2022, the company expects basic weighted average shares outstanding to be approximately 151 million and diluted weighted average shares outstanding to be approximately 157 million. The basic and diluted weighted average shares outstanding for the second quarter of 2022 and full year 2022 do not include any forecasts for share repurchases after March 31, 2022. For a detailed explanation of the company’s non-GAAP measures, please refer to the appendix section of this press release.

For more information on the company’s first quarter 2022 financial results, please see management’s letter to stockholders on the Momentive investor relations website at investor.momentive.ai.

Conference Call Information

Momentive senior management will host a conference call today to discuss the company’s Q1 2022 financial results. This call is scheduled to begin at 2:00 pm PT / 5:00 pm ET and can be accessed by dialing (844) 200-6205 or (646) 904-5544 (ID: 354437). An archived webcast of the conference call will be accessible on Momentive’s Investor Relations page, investor.momentive.ai. A telephonic replay of the conference call will be available until Wednesday, May 11, 2022, and can be accessed by dialing (866) 813-9403 or (929) 458-6194 and entering the passcode 947080.

About Momentive

Momentive (NASDAQ: MNTV—maker of SurveyMonkey) is a leader in agile experience management, delivering powerful, purpose-built solutions that bring together the best parts of humanity and technology to redefine AI. Momentive products, including SurveyMonkey and Momentive brand and market insights solutions, empower ​decision-makers at 345,000 organizations worldwide to shape exceptional experiences. Millions of users rely on Momentive to fuel market insights, brand insights, employee experience, customer experience, and product experience. Ultimately, the company’s vision is to raise the bar for human experiences by amplifying individual voices. Learn more at momentive.ai.

Investor Relations Contact:
Gary J. Fuges, CFA
investors@momentive.ai

Media Contact:
Katie Miserany
pr@momentive.ai

Source: Momentive Global Inc.

MOMENTIVE GLOBAL INC.
 
CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited)
 
(in thousands)   March 31,
2022
    December 31,
2021
 
Assets            
Current assets:            
Cash and cash equivalents   $ 238,035     $ 305,525  
Accounts receivable, net     32,864       32,489  
Deferred commissions, current     8,586       7,945  
Prepaid expenses and other current assets     16,543       11,363  
Total current assets     296,028       357,322  
Property and equipment, net     3,925       5,442  
Operating lease right-of-use assets     50,424       52,232  
Capitalized internal-use software, net     28,688       28,158  
Acquisition intangible assets, net     7,845       10,773  
Goodwill     462,417       463,736  
Deferred commissions, non-current     13,990       13,200  
Other assets     8,751       9,061  
Total assets   $ 872,068     $ 939,924  
Liabilities and stockholders’ equity            
Current liabilities:            
Accounts payable   $ 11,910     $ 7,204  
Accrued expenses and other current liabilities     23,857       30,725  
Accrued compensation     38,923       45,873  
Deferred revenue, current     215,481       200,658  
Operating lease liabilities, current     9,598       9,587  
Debt, current     1,900       1,900  
Total current liabilities     301,669       295,947  
Deferred revenue, non-current     734       1,165  
Deferred tax liabilities     5,919       5,701  
Debt, non-current     184,341       209,816  
Operating lease liabilities, non-current     64,547       66,938  
Other non-current liabilities     5,838       5,883  
Total liabilities     563,048       585,450  
Commitments and contingencies            
Stockholders’ equity:            
Preferred stock            
Common stock     2       2  
Additional paid-in capital     964,474       971,604  
Accumulated other comprehensive income (loss)     (533 )     414  
Accumulated deficit     (654,923 )     (617,546 )
Total stockholders’ equity     309,020       354,474  
Total liabilities and stockholders’ equity   $ 872,068     $ 939,924  
MOMENTIVE GLOBAL INC.
 
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
 
    Three Months Ended
March 31,
 
(in thousands, except per share amounts)   2022     2021  
Revenue   $ 116,986     $ 102,298  
Cost of revenue(1)(2)(3)     22,903       20,772  
Gross profit     94,083       81,526  
Operating expenses:            
Research and development(1)(3)     36,716       32,983  
Sales and marketing(1)(2)(3)     59,636       52,036  
General and administrative(1)(3)     27,917       23,322  
Restructuring(1)(2)     4,883        
Total operating expenses     129,152       108,341  
Loss from operations     (35,069 )     (26,815 )
Interest expense     2,226       2,299  
Other non-operating (income) expense, net     (134 )     315  
Loss before income taxes     (37,161 )     (29,429 )
Provision for income taxes     216       218  
Net loss   $ (37,377 )   $ (29,647 )
Net loss per share, basic and diluted   $ (0.25 )   $ (0.20 )
Weighted-average shares used in computing basic and diluted net loss per share     150,262       144,692  

(1)        Includes stock-based compensation, net of amounts capitalized as follows:

    Three Months Ended
March 31,
 
(in thousands)   2022     2021  
Cost of revenue   $ 1,409     $ 1,482  
Research and development     8,644       9,497  
Sales and marketing     6,065       5,778  
General and administrative     7,375       6,842  
Restructuring     2,761        
Stock-based compensation, net of amounts capitalized   $ 26,254     $ 23,599  

(2)        Includes amortization of acquisition intangible assets as follows:

    Three Months Ended
March 31,
 
(in thousands)   2022     2021  
Cost of revenue   $ 1,414     $ 1,490  
Sales and marketing     1,452       1,133  
Restructuring     45        
Amortization of acquisition intangible assets   $ 2,911     $ 2,623  

(3)        Includes acquisition-related costs as follows:

    Three Months Ended
March 31,
 
(in thousands)   2022     2021  
Cost of revenue   $ 318     $  
Research and development     1,770        
Sales and marketing     1,679        
General and administrative     2,733        
Acquisition-related transaction costs   $ 6,500     $  
MOMENTIVE GLOBAL INC.
 
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)
 
    Three Months Ended March 31,  
(in thousands)   2022     2021  
Cash flows from operating activities            
Net loss   $ (37,377 )   $ (29,647 )
Adjustments to reconcile net loss to net cash provided by operating activities:            
Depreciation and amortization     9,354       10,694  
Non-cash leases expense     3,202       3,340  
Stock-based compensation expense, net of amounts capitalized     26,254       23,599  
Deferred income taxes     217       99  
Bad debt expense     644       307  
Other     727       508  
Changes in assets and liabilities:            
Accounts receivable     (1,047 )     (76 )
Prepaid expenses and other assets     (8,117 )     (4,682 )
Accounts payable and accrued liabilities     (2,341 )     9,251  
Accrued compensation     (6,898 )     (9,274 )
Deferred revenue     14,283       16,985  
Operating lease liabilities     (3,801 )     (3,786 )
Net cash provided by (used in) operating activities     (4,900 )     17,318  
Cash flows from investing activities            
Purchases of property and equipment     (441 )      
Capitalized internal-use software     (2,565 )     (2,268 )
Net cash used in investing activities     (3,006 )     (2,268 )
Cash flows from financing activities            
Proceeds from stock option exercises     2,273       9,553  
Payments to repurchase common stock     (36,376 )      
Repayment of debt     (25,550 )     (550 )
Net cash provided by (used in) financing activities     (59,653 )     9,003  
Effect of exchange rate changes on cash     393       (309 )
Net increase (decrease) in cash, cash equivalents and restricted cash     (67,166 )     23,744  
Cash, cash equivalents and restricted cash at beginning of period     306,121       224,614  
Cash, cash equivalents and restricted cash at end of period   $ 238,955     $ 248,358  
Supplemental cash flow data:            
Interest paid for term debt   $ 2,009     $ 2,177  
Non-cash investing and financing transactions:            
Stock compensation included in capitalized software costs   $ 719     $ 559  
Accrued unpaid capital expenditures   $ 207     $ 547  
Lease liabilities arising from obtaining right-of-use assets, net   $     $ 2,676  
MOMENTIVE GLOBAL INC.  
   
SUPPLEMENTAL DISAGGREGATED REVENUE DATA (unaudited)  
   
Quarterly Disaggregated Revenue  
   
    Three Months Ended  
(in thousands)   Mar. 31, 2022   Dec. 31, 2021   Sep. 30, 2021   Jun. 30, 2021   Mar. 31, 2021  
Self-serve revenue   $ 75,803   $ 77,389   $ 77,134   $ 75,462   $ 71,112  
Sales-assisted revenue     41,183     39,953     37,620     33,930     31,186  
Revenue   $ 116,986   $ 117,342   $ 114,754   $ 109,392   $ 102,298  

Self-serve revenues are generated from products purchased independently through our website.

Sales-assisted revenues are generated from products sold to organizations through our sales team.

MOMENTIVE GLOBAL INC.
 
RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) (1)
 
Reconciliation of GAAP to Non-GAAP (Loss) Income from operations
 
    Three Months Ended
March 31,
 
(in thousands, except percentages)   2022     2021  
GAAP Loss from operations   $ (35,069 )   $ (26,815 )
GAAP Operating margin     (30 )%     (26 )%
Stock-based compensation, net     26,254       23,599  
Acquisition-related transaction costs     6,500        
Amortization of acquisition intangible assets     2,911       2,623  
Restructuring     2,077        
Non-GAAP (Loss) Income from operations   $ 2,673     $ (593 )
Non-GAAP Operating margin     2 %     (1 )%
Reconciliation of GAAP to Non-GAAP (Loss) Income and (Loss) Income per diluted share
    Three Months Ended
March 31,
 
(in thousands, except per share amounts)   2022     2021  
GAAP Net Loss   $ (37,377 )   $ (29,647 )
GAAP Net Loss per diluted share   $ (0.25 )   $ (0.20 )
Weighted-average shares used to compute GAAP net loss per diluted share     150,262       144,692  
             
Stock-based compensation, net     26,254       23,599  
Acquisition-related transaction costs     6,500        
Amortization of acquisition intangible assets     2,911       2,623  
Restructuring     2,077        
Income tax effect on Non-GAAP adjustments(2)     219       96  
             
Non-GAAP Net (Loss) Income   $ 584     $ (3,329 )
Non-GAAP Net (Loss) Income per diluted share   $     $ (0.02 )
Weighted-average shares used to compute Non-GAAP net (loss) income per diluted share     151,657       144,692  

(1) Please see Appendix A for explanation of non-GAAP measures used.
(2) Due to the full valuation allowance on our US deferred tax assets, there was no tax effects associated with the Non-GAAP adjustment for acquisition-related transaction costs, stock-based compensation and restructuring costs. Non-GAAP adjustments pertain to the income tax effects of amortization of acquisition-related intangible assets.

Calculation of Free Cash Flow
    Three Months Ended
March 31,
 
(in thousands)   2022     2021  
Net cash provided by (used in) operating activities   $ (4,900 )   $ 17,318  
Purchases of property and equipment     (441 )      
Capitalized internal-use software     (2,565 )     (2,268 )
Free cash flow   $ (7,906 )   $ 15,050  
MOMENTIVE GLOBAL INC.
 
RECONCILIATION OF GAAP TO NON-GAAP DATA (unaudited) (1)
 
Supplemental GAAP and Non-GAAP Information
 
    Three Months Ended
March 31,
 
(in thousands, except percentages)   2022     2021  
GAAP Gross profit   $ 94,083     $ 81,526  
GAAP Gross margin     80 %     80 %
Stock-based compensation, net     1,409       1,482  
Amortization of acquisition intangible assets     1,414       1,490  
Acquisition-related transaction costs     318        
Non-GAAP Gross profit   $ 97,224     $ 84,498  
Non-GAAP Gross margin     83 %     83 %
             
GAAP Research and development   $ 36,716     $ 32,983  
GAAP Research and development margin     31 %     32 %
Stock-based compensation, net     8,644       9,497  
Acquisition-related transaction costs     1,770        
Non-GAAP Research and development   $ 26,302     $ 23,486  
Non-GAAP Research and development margin     22 %     23 %
             
GAAP Sales and marketing   $ 59,636     $ 52,036  
GAAP Sales and marketing margin     51 %     51 %
Stock-based compensation, net     6,065       5,778  
Amortization of acquisition intangible assets     1,452       1,133  
Acquisition-related transaction costs     1,679        
Non-GAAP Sales and marketing   $ 50,440     $ 45,125  
Non-GAAP Sales and marketing margin     43 %     44 %
             
GAAP General and administrative   $ 27,917     $ 23,322  
GAAP General and administrative margin     24 %     23 %
Stock-based compensation, net     7,375       6,842  
Acquisition-related transaction costs     2,733        
Non-GAAP General and administrative   $ 17,809     $ 16,480  
Non-GAAP General and administrative margin     15 %     16 %
             
GAAP Restructuring   $ 4,883     $  
GAAP Restructuring margin     4 %     0 %
Stock-based compensation, net     2,761        
Amortization of acquisition intangible assets     45        
Other restructuring costs     2,077        
Non-GAAP Restructuring   $     $  
Non-GAAP Restructuring margin     0 %     0 %

(1)        Please see Appendix A for explanation of non-GAAP measures used.

APPENDIX A

MOMENTIVE GLOBAL INC.
EXPLANATION OF NON-GAAP MEASURES

To supplement our condensed consolidated financial statements, which are prepared and presented in accordance with US GAAP (“GAAP”), we use the following Non-GAAP financial measures: Non-GAAP (loss) income from operations, Non-GAAP operating margin, Non-GAAP net (loss) income, Non-GAAP net (loss) income per diluted share, Non-GAAP gross profit, Non-GAAP gross margin, Non-GAAP research and development, Non-GAAP research and development margin, Non-GAAP sales and marketing, Non-GAAP sales and marketing margin, Non-GAAP general and administrative, Non-GAAP general and administrative margin, Non-GAAP restructuring, Non-GAAP restructuring margin, and free cash flow. Our definition for each Non-GAAP measure used is provided below, however a limitation of Non-GAAP financial measures is that they do not have uniform definitions. Accordingly, our definitions for Non-GAAP measures used will likely differ from similarly titled Non-GAAP measures used by other companies thereby limiting comparability.

With regards to the Non-GAAP guidance provided above, a reconciliation to the corresponding GAAP amounts is not provided as the quantification of certain items excluded from each respective Non-GAAP measure, which may be significant, cannot be reasonably calculated or predicted at this time without unreasonable efforts. For example, the Non-GAAP adjustment for stock-based compensation expense, net, requires additional inputs such as number of shares granted and market price that are not currently ascertainable.

Non-GAAP (loss) income from operations, Non-GAAP operating margin: We define Non-GAAP (loss) income from operations as GAAP loss from operations excluding stock-based compensation, net, acquisition-related transaction costs, amortization of acquisition intangible assets, and restructuring. Non-GAAP operating margin is defined as Non-GAAP (loss) income from operations divided by revenue.

Non-GAAP net (loss) income, Non-GAAP net (loss) income per diluted share: We define Non-GAAP net (loss) income as GAAP net loss excluding stock-based compensation, net, acquisition-related transaction costs, amortization of acquisition intangible assets, restructuring, and including the income tax effect on Non-GAAP adjustments. Non-GAAP net (loss) income per diluted share is defined as Non-GAAP net (loss) income divided by the weighted-average shares outstanding.

Non-GAAP gross profit, Non-GAAP gross margin: We define Non-GAAP gross profit as GAAP gross profit excluding stock-based compensation, net, amortization of acquisition intangible assets, and acquisition-related transaction costs. Non-GAAP gross margin is defined as Non-GAAP gross profit divided by revenue.

Non-GAAP research and development, Non-GAAP research and development margin: We define Non-GAAP research and development as GAAP research and development excluding stock-based compensation, net and acquisition-related transaction costs. Non-GAAP research and development margin is defined as Non-GAAP research and development divided by revenue.

Non-GAAP sales and marketing, Non-GAAP sales and marketing margin: We define Non-GAAP sales and marketing as GAAP sales and marketing excluding stock-based compensation, net, amortization of acquisition intangible assets, and acquisition-related transaction costs. Non-GAAP sales and marketing margin is defined as Non-GAAP sales and marketing divided by revenue.

Non-GAAP general and administrative, Non-GAAP general and administrative margin: We define Non-GAAP general and administrative as GAAP general and administrative excluding stock-based compensation, net and acquisition-related transaction costs. Non-GAAP general and administrative margin is defined as Non-GAAP general and administrative divided by revenue.

Non-GAAP restructuring, Non-GAAP restructuring margin: We define Non-GAAP restructuring as GAAP Restructuring excluding stock-based compensation, net, amortization of acquisition intangible assets, and other restructuring costs. Non-GAAP Restructuring margin is defined as Non-GAAP Restructuring divided by revenue.

We use these Non-GAAP measures to compare and evaluate our operating results across periods in order to manage our business, for purposes of determining executive and senior management incentive compensation, and for budgeting and developing our strategic operating plans. We believe that these Non-GAAP measures provide useful information about our operating results, enhance the overall understanding of our past financial performance and future prospects, and allow for greater transparency with respect to key metrics used by our management in evaluating our financial performance and for operational decision making, but they are not meant to be considered in isolation or as a substitute for comparable GAAP measures and should be read only in conjunction with our condensed consolidated financial statements prepared in accordance with GAAP.

We have excluded the effect of the following items from the aforementioned Non-GAAP measures because they are non-cash and/or are non-recurring in nature and because we believe that the Non-GAAP financial measures excluding these items provide meaningful supplemental information regarding operational performance and liquidity. We further believe these measures are useful to investors in that it allows for greater transparency to certain line items in our financial statements and facilitates comparisons to historical operating results and comparisons to peer operating results. A description of the Non-GAAP adjustments for the above measures is as follows:

  • Stock-based compensation, net: We incur stock based-compensation expense on a GAAP basis resulting from equity awards granted to our employees. Although stock-based compensation is a key incentive offered to our employees, and we believe such compensation contributed to the revenues earned during the periods presented and also believe it will contribute to the generation of future period revenues, we continue to evaluate our business performance excluding stock-based compensation expenses. Stock-based compensation expenses will recur in future periods.
  • Acquisition-related transaction costs: We incur transaction costs on a GAAP basis resulting from our acquisitions, including our terminated acquisition by Zendesk. These costs relate to advisory, legal and accounting services, and retention payments to certain employees. Acquisition-related transaction costs is inconsistent in amount and frequency and is significantly affected by the timing and size of any acquisitions and are therefore excluded from our Non-GAAP results as they do not otherwise relate to our core business operations. However, we may incur these expenses in future periods in connection with any new acquisitions.
  • Amortization of acquisition intangible assets: We incur amortization expense on intangible assets on a GAAP basis resulting from prior acquisitions. Amortization of acquired intangible assets is inconsistent in amount and frequency and is significantly affected by the timing and size of any acquisitions. Investors should note that the use of intangible assets contributed to our revenues earned during the periods presented and will contribute to our future period revenues as well. Amortization of acquisition intangible assets will recur in future periods.
  • Restructuring: Restructuring expenses consist of employee severance and other exit costs. We believe it is useful for investors to understand the effects of these items on our total operating expenses. We expect that restructuring costs will generally diminish over time with respect to strategic initiatives and/or past acquisitions. However, we may incur these expenses in future periods in connection with any new strategic initiatives and/or acquisitions.

For more information on the Non-GAAP financial measures, please see the “Reconciliation of GAAP to Non-GAAP Data” section of this press release. The accompanying tables provide details on the GAAP financial measures that are most directly comparable to the Non-GAAP financial measures and the related reconciliations between those financial measures.

Free cash flow: We define free cash flow as GAAP net cash provided by or used in operating activities less purchases of property and equipment and capitalized internal-use software. We consider free cash flow to be an important measure because it measures our liquidity after deducting capital expenditures for purchases of property and equipment and capitalized software development costs, which we believe provides a more accurate view of our cash generation and cash available to grow our business. We expect to generate positive free cash flow over the long term. Free cash flow has limitations as an analytical tool, and it should not be considered in isolation or as a substitute for analysis of other GAAP financial measures, such as net cash provided by or used in operating activities. Some of the limitations of free cash flow are that free cash flow does not reflect our future contractual commitments and may be calculated differently by other companies in our industry, limiting its usefulness as a comparative measure.

Safe Harbor Statement

“Safe Harbor” statement under the Private Securities Litigation Reform Act of 1995: This press release may contain forward-looking statements about our financial outlook, outstanding shares, products, including our investments in products, technology and other key strategic areas. The achievement of the matters covered by such forward-looking statements involves risks, uncertainties and assumptions. If any of these risks or uncertainties materialize or if any of the assumptions prove incorrect, the company’s results could differ materially from the results expressed or implied by the forward-looking statements the company makes.

The risks and uncertainties referred to above include – but are not limited to – risks related to the COVID-19 coronavirus pandemic; our ability to retain and upgrade customers; our revenue growth rate; our brand (including our recent rebranding); our marketing strategies; our self-serve business model; the length of our sales cycles; the growth and development of our salesforce; security measures; expectations regarding our ability to timely and effectively scale and adapt existing technology and network infrastructure to ensure that our products and services are accessible at all times; competition; our debt; revenue recognition; our ability to manage our growth; our culture and talent; our data centers; privacy, security and data transfer concerns, as well as changes in regulations, which could impact our ability to serve our customers or curtail our monetization efforts; litigation and regulatory issues; expectations regarding the return on our strategic investments; execution of our plans and strategies, including with respect to mobile products and features and expansion into new areas and businesses; our international operations; intellectual property; the application of U.S. and international tax laws on our tax structure and any changes to such tax laws; acquisitions we have made or may make in the future; the price volatility of our common stock; and general economic conditions.

Further information on these and other factors that could affect our financial results are included in documents filed with the Securities and Exchange Commission from time to time, including the section entitled “Risk Factors” in the Quarterly Report on Form 10-Q that will be filed for the quarter ended March 31, 2022, which should be read in conjunction with these financial results. These documents are or will be available on the SEC Filings section of our Investor Relations website page at investor.momentive.ai. All information provided in this release and in the attachments is as of May 4, 2022, and we undertake no obligation to update this information.

Source: globenewswire.com

 

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