CNBC Disruptor 50

SurveyMonkey files to go public, lost $27 million on $121 million in sales in first half of 2018

Key Points
  • Surveymonkey was founded in 1999.
  • The company grew revenue more than 13 percent in the first half of 2018.
Zander Lurie, CEO of Survey Monkey
Drew Angerer | Getty Images

SurveyMonkey, a company with software that companies can use to get input from employees, customers and others, on Wednesday filed to go public on the Nasdaq under the symbol SVMK.

The company is looking to raise as much as $100 million in the deal, according to the filing.

In the first half of 2018, SurveyMonkey had a $27.18 million net loss on $121.2 million in revenue. That compares with a $19.1 million net loss on $106.5 million in revenue in the first half of 2017, reflecting 13.8 million revenue growth rate.

But SurveyMonkey did narrow its losses from 2016 to 2017, going from $76.4 million on $207.3 million in revenue down to $24 million on $218.8 million in revenue, respectively.

The lead underwriters are JP Morgan, Allen and Co. and BofA Merrill Lynch.

SurveyMonkey was founded by Ryan Finley in 1999, has its headquarters in San Mateo, Calif., and had 761 employees as of June 30. Zander Lurie has been the company's CEO since 2016, following a number of predecessors including Dave Goldberg, who died in 2015.

"SurveyMonkey embodies who Dave was as a person—curious, helpful, approachable and at the same time powerful. Our strong company culture and business were shaped by his leadership," Lurie wrote in a letter included in the filing. "Anyone who knew Dave will understand how devastating it was for the company -- for all of Silicon Valley, actually -- to lose such a visionary. Organizations that suffer that sort of shock can either unravel or rally. We rallied. I believe the company is more empathetic, more resilient and more determined because of Dave's life and death."

Amazon founder and CEO Jeff Bezos laughs as he talks to the media while touring the new Amazon Spheres during the grand opening at Amazon's Seattle headquarters in Seattle, Washington, January 29, 2018.
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Goldberg was married to Sheryl Sandberg, a SurveyMonkey board member and Facebook's chief operating officer. Other SurveyMonkey board members include tennis player Serena Williams and Brad Smith, who is stepping down as CEO of Intuit.

Between 2015 and 2017, the company spent $3.3 million on Facebook search engine marketing services, the company revealed.

The company cited Alphabet's Google as a competitor, along with companies like Qualtrics and Medallia that offer "licensed enterprise feedback software." SurveyMonkey's investors include Tiger Global and the Sheryl K. Sandberg Revocable Trust.

SurveyMonkey had more than 2,900 customers with organization-level agreements at the end of June, according o the filing.

SurveyMonkey included a survey in the filing itself. "We want to hear the opinions and feedback of our prospective public investors, so we can continue to improve," the company said. There were two open-ended questions, including, "What's the top thing that stands out to you about SurveyMonkey today?"

SurveyMonkey is the latest in a wave of venture-backed tech companies that have filed to go public this year, including Dropbox, DocuSign, Domo, Eventbrite and Sonos.

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