Q1 2022 Momentive Global Inc Earnings Call
And over time.
Now a bit more on our Q1 highlights.
Q1 was a record breaking quarter for our sales assisted channel, reaching a $165 million revenue run rate sales.
Sales assisted revenue increased 32% year over year, the fourth consecutive quarter of 30 plus percent year over year revenue growth, leading indicators here outpaced revenue growth.
We increased our customer count, 55% year over year, adding 1800, plus new customers in the quarter like Ace hardware Bosch car facts Merck in the U S citizenship and immigration services.
Our high velocity sales team, that's helping drive substantial new logo growth. The deal cycles are fast cost efficient and set the foundation for future expansion conversations.
In addition, we're winning larger customer relationships more than 2100 organizational customers are now spending more than $25000 per year with momentum.
700, plus sales assisted customers are using multiple products, both metrics increasing significantly year over year.
Our core product what we've traditionally referred to as service is resonating with customers of all sizes across a variety of industries for various use cases.
Customers value the flexibility ease of use and power of our platform delivers for instance in 2018 box purchased our core product for CX use cases over.
Well the time box has expanded into multiple cases, including marketing enablement internal comms and HR.
And they are expanding again into our insight solutions.
Things like this are not isolated it's why average customer sizes for sales assistant core product customers, excluding our newer high velocity sales motion have increased for eight straight quarters and grew 15% year over year in Q1.
Similarly, our insight solutions, what we traditionally referred to as market research are gaining significant traction customers love the speed to insight automated analysis and response quality.
All underpinned by a panel of 175 million global responded.
The VP of marketing at a large <unk> company tells us that running research without seamless and getting actionable insights was lightning fast now.
A multinational agricultural company loves our automated analysis, which enabled them to launch a study on a Wednesday complete their presentation by Friday.
Our insight solutions generate our largest deals largest customers and most productive sales representatives.
And in Q2, we will begin testing packaging that moves our insight solution to a subscription model.
And our self serve channel Q1 revenue growth of 7% was in line with our expectations.
As reflected in our 2022 guidance, we're working for two factors to drive durable growth.
First over the past three years, we've focused on aligning price the value for self serve customers led by meaningful pricing and packaging and experiments to our user base amending entitlements of both free users and paid users. These.
These actions have driven exceptional growth and now we're moving into the next evolution of our strategy focused on driving sustainable user growth.
Doing so is beneficial for our overall business as we graduate users from single paid plans to teams plans to sales assistant relationships.
Second we meaningfully shifted focus in 2021 to launch a new momentum brand a key tenant of our multichannel go to market strategy to more clearly communicate the value and attributes of our products to customers. We were successful however.
However, we focused less on supporting that survey monkey brand during that period, which was magnified by distractions from the proposed acquisition.
The good news renewal rates are in line with expectations and we're not seeing evidence of competitive churn. We believe these challenges are transitory and we're addressing them.
Led by our new Chief operating Officer Priyanka car the plan is threefold.
First generate high quality user traffic by extending our brand leadership, specifically through new content and SCO strategy.
Focused brand initiatives and SCM investments.
Further the days of VC backed startups bidding on our brand terms without consequence are over we are swinging back harder than ever.
Second drive sustainable growth in users by calibrating. The features offered in certain package types and delivering targeted high value functionality enhancements.
Third reduce customer friction by simplifying the buying and onboarding process, so customers can adopt our products and realized value quickly.
It's an achievable set of improvements that we believe will benefit leading growth indicators and the self serve channel starting in the second half of the year.
We grew up as a product led growth company, we are a market leader here and we have the team in place to execute on the plan.
Over the past two months, we've aggressively pursued the focused strategy changes outlined in our February letter to shareholders. Many of which were contemplated in the second half of last year, but delayed given the proposed acquisition.
The progress thus far is compelling.
We are out of the gate strong on customer centric innovation, we've reorganized our R&D organization centralized our product strategy and prioritize our roadmap around a focused set of opportunities.
Our core product is the foundation that delivers value for customers of all sizes across myriad of use cases.
<unk> responded panel and provides intelligence on what features and use cases, our customers value most.
We are focused on strengthening our foundational offering functionality.
Extending our admin capabilities and advancing our analytics maturity.
Our core platform extends to purpose built solutions for markets products and brand insights as well as customer experience.
We are planning to fuel the momentum we've seen in our insight solutions by deepening existing solutions and market <unk>.
Selectively expanding into new use cases, and enhancing our statistical analysis capabilities.
And we're working to bring get feedback capabilities closer to our core product, leading the functionality and innovation velocity benefits overtime.
Similarly, we've made significant progress in a short period of time and our go to market strategy and execution.
We have begun executing on a plan to reinvigorate our self serve channel we've moved quickly to align our resources to the products and segments generating the highest returns in our sales channels.
Resources are aligned and executing on simplifying our positioning and web services under two brands momentum and survey monkey.
And we're seeing early success in our focus on existing customer expansion one of our most efficient and profitable go to market motions.
And Q1 expansion business increased significantly both sequentially and year over year, hitting a new high as a percentage of total business generated kudos to our chief revenue Officer, John Insurance, Stein, and Chief customer Officer, Ken <unk>.
Finally, the leadership and organizational changes we made are working our streamline leadership team and organizational structure is leading to faster higher quality execution and is reinforcing our focus on customers at the center.
Our global team is executing with focus and energy.
Have we faced distraction since October without a doubt we have but those who know our history know our resilience has been tested before and resilience is in our DNA.
Our team is focused committed and all in on our mission.
We are energized to be back running the business at full steam.
And if a more challenging macro environment rewards companies with balance growth and expanding margins with <unk>.
Our chances.
I'll now turn the call over to Justin who are more deeply review, our Q1 financial results and outlook.
Thanks, Zander and I'd like to congratulate pre on her new role as our Chief operating Officer show joins Andrew and me to answer questions. During the Q&A portion of today's call now onto our Q1 2022 financial results and outlook unless otherwise noted all comparisons are year over year.
Q1, total revenue was $117 million, an increase of 14% year over year and above our previously issued guidance range revenue from our sales assisted channel increased 32% year over year in line with our expectations and accounted for 35% of total revenue compared to 30% in a year ago.
<unk>.
We added more than 800 customers and now have approximately 13700 customers with our sales assisted relationship.
New and expansion bookings were strong, especially across our core product and insight solutions and the growth. We drove continues to become more efficient with productivity per ramped sales account executive reaching the highest level since 2019 growing approximately 30% year over year.
Further gross and net dollar base renewal rates remain strong with our core product recording its highest levels across both metrics in five quarters. The investment you've made to pursue expansion within our massive 345000, plus organizational domain customer base is working.
And beginning to deliver early returns further organizational domain net retention rate remained over 100%.
Revenue from our self serve channel grew 7% in Q1 in line with expectations. We shared in late February and like many other SaaS companies, we experience revenue headwinds related to foreign exchange rates in Q1, we estimate that FX was approximately a one point headwind to Q1 year over year growth.
Deferred revenue increased 15% to approximately $216 2 million and remaining performance obligations or <unk>, which is the sum of deferred revenue and backlog rose, 20% to $245 4 million, partially driven by continued traction in winning larger multiyear customer commitments as we have.
Shared in the past, we signed our largest customer to a multi year deal in Q2 of 2021. Once we lap. This milestone in Q2 of this year, we anticipate <unk> growth will track closer to deferred revenue growth overtime.
Turning to profitability non-GAAP gross margin was 83% improving by approximately 50 basis points from the year ago period, non-GAAP operating margin expanded to 2% compared to negative 1% in Q1 of 2021 on a percentage of revenue basis, all functional operating expense lines improved year over year.
Demonstrating the leverage of our business model in Q1, we recognized approximately $6 5 million in one time transaction related expenses.
Namely advisor fees legal fees and employee retention bonuses, we anticipate the majority of expenses will be recognized at the end of Q2.
In Q1, we also recognized $4 9 million of restructuring expenses related to the strategic changes referenced in our February shareholder letter.
We anticipate the majority of these expenses will be recognized by the end of Q4.
Net cash used by operating activities was $5 million and free cash flow was negative $8 million both reflect the impact of paying annual performance bonuses in Q1, and a portion of the onetime transaction expenses and restructuring expenses previously noted as part of our previously announced $200 million share repurchase.
Graham as of March 31, we repurchased approximately $36 million of momentum stock representing $2 4 million shares at an average price of $15 nine per share as part of the program. We also reduced our debt by approximately $26 million, we ended the quarter with $238 million in <unk>.
Cash and equivalents on the balance sheet.
Turning to our outlook today, we are providing full year and Q2 guidance for Q2, we expect revenue to be approximately $120 million to $122 million we.
We expect non-GAAP operating margin to be approximately 1% to 3% as a reminder, non-GAAP operating margin tends to be lower in Q1, and Q2 based on our seasonal investment pattern in sales and marketing and R&D.
For the full year 2022, we expect revenue of approximately $494 million to $500 million.
We anticipate similar year over year revenue growth rates for Q2, and Q3, implying modest year over year revenue growth acceleration in Q4.
As we've noted in the past revenue from our insight solutions previously referred to as market research is recognized on a consumption basis as projects are completed.
And can impact the linearity of quarter to quarter revenue growth trends will continue to provide transparency into this dynamic through the remainder of 2022.
We expect the sales assistant channels year over year revenue growth rate will be in the <unk> for 2022 self serve channel revenue will reflect the dynamics Zander discussed previously with low single digit growth for the remainder of the year.
We expect full year 2022, non-GAAP operating margin of approximately 6% to 7%, which assumes a consistent gross margin profile and operating leverage acceleration in the second half we expect to exit 2022 with operating margin in the low double digits, we expect full year 2022 free cash flow.
Out of approximately $24 million to $29 million, which includes the impact of approximately $27 million in one time transaction related and restructuring expenses a portion of which were accrued expenses in 2021, but will result in cash outflows in 2022.
It goes without saying, we've made widely accepted assumptions on foreign exchange rates in our guidance and should conditions necessitate that we amend this assumptions in a material way.
Our outlook accordingly.
Q1 was all about focus and execution, we move with speed and operating rigor to make targeted strategic changes and align resources to the areas of our business with the highest growth potential and return profile you can see the green shoots and our sales assisted channel results.
The remainder of 2022 will build on the same operating discipline and lay the foundation for durable and profitable growth coupled with expanding margins.
As always we remain focused on and committed to driving value for shareholders. We look forward to updating you further at our upcoming Investor day, including a refreshed long term operating model and our path to achieving the rule of 40, we plan on announcing the date in the near future.
Now I'll turn the call back to Zander.
Thank you Jeff before we take your questions I'd like to provide a quick update on our work in environmental social and governance issues or ESG.
Environmental and social areas, we just published our 2021, social impact report, which showcases how we executed against our social impact strategy last year.
The report is available on our website and I wanted to share some quick highlights.
We are shaping a unique culture with diversity equity and inclusion through diverse recruiting hiring and employee training. We continue to move towards our 2024 goal to achieve gender parity in our workplace.
We are shaping a more sustainable business with the completion of our first full greenhouse gas emissions footprint analysis, which will serve as the benchmark for our future goals and strategy.
Finally, we are helping shape resilient communities by promoting high value, an equitable education and access to career development and opportunities for marginalized communities minimizing our impact on the environment.
Regarding governance, we submitted a proposal in our proxy statement for our annual meeting to phase out our classified board of directors.
Stockholders approve which our board recommends all directors, who will stand for reelection annually beginning at our 2024 annual meeting.
The board believes the classification will provide stockholders with a more active role in shaping implementing corporate governance policies.
We remain committed to our ESG initiatives for the benefit of all stakeholders.
I'd like to thank our customers employees and our shareholders for their continued energy and support we are moving with alacrity and discipline to position the business for more durable growth with expanding margins and Q1 results show that we're sprinting out of the blocks in 2022.
Thank you operator, we will now take your questions.
Of course, thank you if I can ask a question. Please press star followed by one on your telephone keypad. If for any reason you would like to remove a question. Please press star followed by team again to ask a question Thats Star one.
As a reminder, if you are using a speaker phone. Please remember to pick up your handset before asking your question.
I'll pause here briefly ask questions are registered.
Our first question comes from Youssef Squali with chewy.
You said your line is now open.
Hi, great. Thank you very much hi, guys hope all is well.
Couple of questions for me.
Starting.
Would you Zander.
On the self serve side can you, maybe just flesh out a little bit more your comments about the new features product improvements that you're.
Working on planning on launching in the second half of the year that gives you confidence that that.
That business could get back to faster growth and historically I should say historically, but last year for much of last year that that.
That business was growing double digits is that a reasonable level for us to expect maybe into 2023 and then just on the sales assistant.
Business guidance.
30% plus for the year, maybe can you just help us how you get there I think your deferred revenues were up 15% for the year. Your rpms were up 20%. So just how do you.
Maintained.
Plus percent growth over the next three quarters. Thank you.
Sure. Thanks for the question you've you have followed us for a long time, so you've seen this business mature from one where.
Our sales assisted business was a single digit percentage and today, it's in the mid thirties, and so over time as that 30 plus percent growth rate continues you have that really durable tailwind, which drives up the overall company growth rate.
I will.
I'll put you back a year or two where we had some real challenges on product market fit and scaling our sales motion and I couldnt be more proud of where we are today approaching that $200 million run rate and just <unk>.
Excellent velocity on that sales motion, but our sales assisted business we have had.
Challenges in terms of maintaining that growth rate on self serve and so let's let's look back at what happened last year to.
Two events last year that were once in 20 year events first we did have a major rebrand of the company from survey monkey to momentum to stand up a new website, which is now driving.
Double digit.
A portion of our leads on the sales channel.
And then of course the announcement on October 28th to sell the company to then desk and so to say that we had some major.
Factors pulling away attention from some of our best and brightest.
It would be an understatement today with the rebrand behind us and the deal obviously well behind US. We are now laser focused on a couple of areas that we think are really critical and I'll ask <unk> to talk a little bit later on about what we're doing to both drive awareness and traffic better SCO and SCM.
Packaging, which we believe is more responsive to the needs of our customers.
And then some navigation and flows which her team.
<unk> is working on which is improving velocity in that self serve channel.
Alright, thanks for that.
So just going back to basics on ourselves.
Definitely there's a funnel right.
At the very top of the funnel and we have conversion when we retain those customers overall.
You've done a diagnosis over the last couple of months and really gotten into the weeds of what's working in Western Sydney and our conversion was strong our retention is strong that tells us that we don't have a competitive loss.
Yeah, we have strong product market fit.
The area, we've honed in on is our top of funnel.
We have seen some weakness.
And they're a little too.
Hi, there step that we took we put a lot of effort into launching a new brand and that was successful they're putting that same type of head back into survey monkey in the brand and reinvigorating the top of funnel.
Those efforts are well underway already that for example in the CLO.
Our website, you've seen more content release out.
That gives us a ranking that little hard and over the course of this year and pull our coverage on the first part of that market.
We're taking a much stronger competitive stance, we have black competitor here I said on our brand in <unk> overall.
Overall, we are taking on a more competitive aggressive stance on conquest setbacks.
On brand we are launching campaigns not just for momentum, but also first part of that market and increasing our strong brand position to drive traffic and conversion we are optimizing our value side of the equation here and you'll see our packages change to align more we're taking more market share and being the leading product that product growth and optimization, we're launching capable.
But he has to make it easier for our customers to discover our features such as our product launch that these were put into effect over the last few months. So I would call them green shoots that you're seeing them today, but theyre going to hide in over time and they are affected in that war.
Yeah.
Hey, Youssef and I'll take your second question, there so I think that.
They're really good thing that we've seen over the course of the past two quarters.
<unk> go to market channels. We have are working together they are complementary in the other operating at scale and so said differently. Our self serve channel is a great way to attract customers in an efficient way and they are moving from single user teams to sales assisted relationships and then to multi product relationships, which were already.
Starting to see much of that is what gives me high conviction in sales remaining in the <unk> for this year renewal rates are incredibly strong our expansion motion is working and as we've talked about our aes, we've really focused them over the course of the past six quarters to drive on productivity.
<unk> they were at the highest level of productivity that we've seen in years and 30% year over year growth. So a lot of a lot of good indicators, there that give us give us confidence.
That's great color. Thank you all.
Thank you Sir.
Our next question comes from.
Bryan Mcdonald.
Brian Your line is now open.
Hi, Thanks for taking my questions and congrats on a nice quarter here, maybe double clicking on on the previous commentary there just around the sales assisted channel, we've really seen sort of a strong momentum sort of fourth quarter and first quarter in terms of new customer adds and you can talk a lot about the high velocity channel there.
As we start to look out to the back half of 'twenty tuned into 'twenty three.
When do we start to see some of that high velocity channel driving conversion into the multi product sales, but sort of the timeframe. There and then how should we start to think about that flowing them through to ARPA expansion as the last couple of quarters, we've seen some declines likely due to the sort of the accelerated nature of the customer assets, but what about more color on that thanks.
Hey, Ryan let me kick it off as Andrew and then I'll throw it to Justin first of all I would point you to the number of sales assistant customer ads to show the productivity of that group remember team just in finance is a pretty good ability to monitor quota attainment, AE productivity and helping our sales team kind of point them in an area where.
They're driving ROI, so theyre not out there signing up customers that belong on the web <unk> was one of those numbers, where it's kind of the tyranny of averages it doesn't really reflect how productive we are.
I would point you to the number of 25000 of our customers now over 2100 huge year over year growth as our sales team is moving up market and pursuing larger deals. We're also seeing that product multi project expansion. So we've talked about 700 multi product customers. That's a huge win those are wildly profitable customers, where we drive that kind of net revenue retention.
So as you listen to adjusted and pre I think youll see us doing a better job of delivering profitable products to customers wherever they are and that might be users who are coming to use a free product, but driving value in our panel. The paid seats. The team's product survey monkey enterprise customers up to market research and multipart.
Customers so.
This $200 million revenue run rate, we're seeing approaching we believe that 30 plus percent growth is sustainable because of the massive market. Our products have never had better product market fit and our sales and field teams are really firing so lot of good signals through a very choppy kind of distracting environment for the company, Yeah, Ryan and I would add to <unk>.
Pieces of color three pieces of color there number one.
Love our high velocity motion because it is highly efficient it is quick sales cycles and it puts customers into a sales assistant pipeline, where we can go and expand them, whether they expanded one quarters three quarters six quarters eight quarters.
We look at the signals on how we define that but here are a couple of stats that we gave you when you look underneath what's actually happening in our sales assisted channel. If you exclude those high velocity customers from our average revenue per customer we are at our highest level of average revenue per customer that we've ever had from a company perspective, so that is a very.
Heavy acquisition motion for us that is getting logo velocity in there and then when you look at the core product will be previously referred to as surveys again that is a product that has continued to march up and up and up when you exclude the high velocity team for eight quarters in a row now. So we are seeing significant traction it's all about generating a durable.
Highly profitable funnel into our sales base motion.
Yeah.
That's very helpful. I appreciate the color there and then maybe just one more on impressive first initial outlook for 'twenty two on the operating margin.
Some nice leverage as you go into the back half of the year.
The focus on some of the <unk>.
<unk> focus and adjustments or incremental go to market motion, how should we think about sort of the key areas, where you can get the incremental leverage in the model as we look into the back half.
It's a good question Ryan So we will see improvement as a percentage of revenue across all functional line items. When we think about it. This year is all about focus and conviction in the opportunities that are going to drive higher returns. So whether that is the roadmap that pre and her organization or person.
Suing or the areas of go to market, where we're doubling down because we are seeing strong signals from the market and we're seeing highly productive not only marketing the sales assistant motions, that's where a lot of the leverage is going to come from and then what I would also say in addition to that we are being very disciplined in putting a lot of operating rigor into where.
We place head count and what departments, we place head count to ensure that it's focused on the areas that will drive growth and will drive durable growth going forward. So that's where we're focused.
Yeah.
Excellent I appreciate the color. Thanks again.
Okay.
Thank you Brian .
Our next question comes from Brian Fitzgerald.
Wells Fargo.
Brian .
Okay.
Thank you a couple of things.
On the self serve channel again, I'm, just wondering looking at it from maybe a different context when we.
Go back to 2021, how much of that growth.
But youre now Comping was from harvesting free users.
Through some of the product changes you made in and when do you think the opportunity for free to paid conversion.
What are the level levers do you have there.
Going forward.
And then maybe a couple of questions about Europe I think a couple of rigs we had more near term <unk> was talking to a lower traffic trends in Europe on reopening just wondering if youre seeing any of that.
And the business regionally in terms of reduced propensity participate in audience.
Some reduced urgency around.
<unk>.
Hey, Brian Thanks for the question first let me just address Europe .
I've been getting anecdotes from other Ceos et cetera, we're not seeing macro challenges in Europe , obviously, the business in Russia, and Belarus is very very small.
Percentage of our business and our sales team remain productive there. It's obviously not the biggest piece of business, but we have a highly competent team they're selling good products. So we're not signaling weakness in Europe .
I'll ask <unk> to elaborate a bit on seltzer, but what I will say and this is on me more than anybody from an accountability perspective, we put so much focus on getting the product market fit in the sales motion and then shipping that momentum site, which we're really proud of in terms of the role. It plays in the business today and I think pre has taken us back to first principles and the core value proposition of expanding our user base.
And delivering more value to our customers.
And there are plenty of opportunities for us to do that in the navigation in the flows.
Putting out more rich SCO content again, I think we took our eye off some of the ankle biters that are bidding against our brand terms and so we've got a handful of things we are going to do to expand that user base and deliver more value to all of our cohorts from the free users to the paid user to the teams and of course, they drive that sales assisted mark.
Emotion that Justin alluded to so.
It's a little bit of getting back to the basis, but we've been in this business for 23 years, we created the category. We are the market leader and these are problems, we know how to solve.
Thanks, I appreciate it hey, I agree with that.
Hi can I just add a couple of points that you are right that drive a fair amount of conversion improvement of free to paid.
And our conversion assets at a very very healthy level.
One of the best that Ive seen overall and that's why we have even more confidence that the strategy of getting back to you more engaged user interface getting value from our products that we can then apply that same conversion assets as our next phase.
And it gives us also a tailwind into lifestyle channel so.
Next phases heavily focused on the paid user growth ads and our engaged user growth to drive.
Thus far it yes.
Yes, Brian the only the only thing that I would add on the Europe piece I agree with everything as Andrew said.
The real place that we're seeing any impact on the business is just the foreign exchange headwinds and that that's part Europe . Its also part of inflation and interest rate environment. So that's giving us a headwind like pretty much every other company that's reported before us.
Yes.
Awesome. Thanks, I appreciate it guys.
Thank you Brian .
Our next question comes from.
Nick Mariachi with Craig Hallum.
Nick Your line is now open.
Hi, This is Nick on for Chad Bennett, Thanks for taking our questions first can you give us some update on how big the.
The CX and market research product lines are today in terms of revenue mix and maybe directionally, how those businesses are growing relative.
Relative to overall enterprise growth and then second on the strategic Committee I guess other than executing on the plan that was already in place I am curious if.
The strategic review is still ongoing and where the focus is over the next few quarters.
Sure Nick.
In terms of the multi product.
Lineup, we have we don't have any incremental disclosure today about the size of those businesses I can tell you directionally our market research business is on fire pre had led that team over the last couple of years as part of the reason she's sitting in the bigger co chair today product market fit is awesome and we have a massive the most liquid panel in the United States, we built a bunch of great.
Solutions on top of that and really just to speed to value is enabling us to expand with customers like box, who are now buying all of our products. We had a great win with click up you might have seen there.
There are Super Bowl commercial they came to us to evaluate multiple different campaigns, which we were able to.
Test against a broad cohort so we loved the product market fit is the biggest market. We're going after in CX. We think we've got great product market fit in parts of the market, we're not trying to move up and compete with the modalities of the world who have a more service intensive more expensive more time consuming product. So we really see value in selling to folks who.
We have a big Salesforce instance, or who need digital product.
Feedback so CX youll see move closer to the core product offering around momentum and really is the expansion of the survey Monkey suite and then on the strategic Committee I will just point you to our website you can see we have a very highly capable set of fiduciary who sit on our board of directors that committee was stood up to assess the inbound.
We had last year, which led to the.
The Zen desk deal that deal obviously was terminated in February and that.
The community remains available as the board does to assess any potential interest in the business. They are highly highly focused on delivering shareholder value in the management team is accountable to the board to achieve just that.
Got it thank you.
Thank you Nick.
Our next question comes from.
Our final question comes from Parker Lane with thanks.
Parker Your line is now open.
Hi, it's Matt <unk> on for Parker.
Want to start by just thinking about the <unk>.
Success in the sales assisted channel.
The.
Enterprise movement overall, what industries are you seeing success.
Particularly.
Specific industry or is it pretty much across the board.
If you look at our core product offering it's so big that we are not only serving every industry on every continent, but we're serving every function within every one of those companies and so its multinational company that small businesses its educational institutions to nonprofits.
Everything from sales and success in HR to product and everywhere in between on the insight solutions. Some of the market research and CX products, we're offering we're seeing particular.
Success in fin serve in CPG in Tac.
<unk> pre can articulate how what we've really done is expand up market to purpose built solutions, where there are buyers with budgets and big problems and Thats, where our products really thing.
Yeah, and elaborating on that point, the way I think about it less industry and more about the use case, that's why are people that kind of.
And this problem space.
Span industries, which gives us access to your estimates a lot of fans.
The problems lag.
To learn about my customer and what they think about my product I went about great solutions for the market I wanted to build a brand that really compelling and those are the top use cases.
We are seeing.
If market conditions and pretty much every industry and if I have to say, it's a strong concentration in the streets.
Andrew laid out but our focus is more on the use case for something else and the problems. We're solving I love seeing companies like one football, which started with the single survey product scaled dramatically became a survey monkey enterprise customer looking at everything from their customer service experience to product improvements pricing just raised $300 million to expand their growth so seem really.
Strong growth companies with a terrific product using our using our products to understand how to deliver a better experience to their stakeholders as rewarding.
Got it and then just one more just kind of staying on the product topic market researches on fire. As you said and you are now testing out a subscription model for it can you just talk more about what that May mean for the future of the product and bundling and how maybe Rick.
Can we expect that type of model moving away from consumption.
Thanks for the question, yes, absolutely. So the nice thing about this is we've now been at scale with a number of solutions in the market research space for a number of years now what we have been moving the product towards or what we call more longitude and don't use cases, so areas, where we are.
You want to track the market over a period of time for instance brand tracker you want to do that over a series of months quarters years and continue to have more like a subscription framework. While we've also seen is that the way. The market is moving is also more towards subscription. So we are updating and testing our packaging.
As we go into this quarter and the way that we're thinking about it from a model perspective, we will very likely push towards a subscription as we go into the end of this year and the beginning of next year, we will get a slight revenue headwind from that but it's not it's not significant.
Just given the size of the market research.
Business as a proportion of our total revenue and then we'll be in a much better spot as we think about customers coming back and being on a subscription revenue model at that point.
Awesome. Thanks.
Thank you Parker.
This concludes today's Q&A session I will now pass the conference back over to Zander Lurie for closing remarks.
Thank you all for joining us today I want to I want to commend our employee base for their focused execution on our strategic plan. After many months of distraction as Justin said that level of focus and rigor on the model will deliver a reacceleration in revenue late this year and expanding margins.
Which is a real competitive advantage for this company, we have built a terrific set of products and brands and execution will pay it off I think the company has a collective chip on the shoulder to get back to what the success. We know we can deliver and that's what we're here to.
To do so we will update you in future quarterly calls and look forward to your questions and thank you for your support have a great night.
That concludes todays momentum global incorporated quarter, one 2022 earnings call. Thank you for your participation you may now does that timeline.
Okay.