The company said its self-serve business accounted for 88 percent of sales during the quarter, but a sales-assisted segment is quickly scaling.
“We’re still early in the development and expansion of our sales-assisted strategy and we saw great traction with our sales efforts during the quarter, signing agreements with companies such as LinkedIn, Nasdaq, Sky and Intercom,” the company said in its shareholder letter. “By selling SurveyMonkey to the enterprise, we expect to accelerate paying user growth and increase both monetization and retention within organizations.”
Enterprise clients likely account for the company’s rising average revenue per user. The company reported ARPU of $418, an increase of 14.8 percent year-over-year.
SurveyMonkey posted a net loss for the quarter of $102 million, a drastic jump from its loss of $13 million in the year-ago quarter. The company said the higher losses were largely related to changes in stock-based compensation now that it’s public.
SurveyMonkey revealed in its IPO filing that its losses are growing faster than revenue on a percentage basis. The company reported a negative operating margin of 145 percent in the third quarter, compared with a negative operating margin of 11 percent a year earlier.
SurveyMonkey shares dropped last month when its larger and faster-growing rival Qualtrics filed to go public. But after SAP agreed to acquire Qualtrics over the weekend for $8 billion, SurveyMonkey shares rose 7 percent on Monday.
The company, based in San Mateo, California, was founded in 1999 by Ryan Finley. Since 2016, Zander Lurie has served as CEO.
— CNBC’s Jordan Novet and Elizabeth Schulze contributed to this report.
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