Cvent, a meetings, events and hospitality technology provider, provides an update on continued momentum since the announcement of its transaction with Dragoneer Growth Opportunities Corp. II (Nasdaq: DGNS) in July. Over the past four months, Cvent has seen strong growth in its acquisition of new logos, including significant increases in initial contract values. The Company has also seen meaningful expansion within its existing customer base as organizations look to deliver more engaging in-person, virtual and hybrid events and tap into new opportunities that exist due to the digital transformation of meetings and events that was accelerated during the pandemic. The Company continues to be recognized as a leader in its industry, winning multiple awards highlighting excellence in technology innovation, executive leadership, and employee experience. To discuss the company’s progress and future outlook, Cvent CEO & Founder Reggie Aggarwal and Chief Financial Officer Billy Newman recently participated in an on-demand webcast, hosted by IPO Edge, which can be accessed here.
Business Highlights
Over the last four months, Cvent continued to see strong momentum in landing new logos and increasing initial contract values. In addition to the hundreds of smaller deals Cvent closed in the third quarter, the Company closed several large transactions including:
- A state transportation agency initially looking for a single virtual event solution signed a 3-year deal with a total contract value (TCV) of $900,000. This organization will be using Cvent for their virtual, in-person and hybrid events.
- A publicly traded pharma company signed a 2-year deal with a TCV of $1 million. This company chose Cvent due to the breadth and depth of Cvent’s platform and the seamless end-to-end user experience for all attendee-facing interactions.
- A global marketing association signed a 3-year contract for a TCV of nearly $900,000.
- A public IT service management company signed a 3-year contract for a TCV of nearly $546,000.
- An American racing company signed a 2-year contract for a TCV of approximately $190,000.
- A top three travel management company in Japan signed an annual contract value (ACV) of $260,000.
The third quarter also highlighted Cvent’s strong land and expand opportunity.
- Pre-pandemic, a mid-size, global financial advisory client that signed on with Cvent in 2016 had only leveraged Cvent for its in-person events. After leveraging Cvent for one virtual event that exceeded its event goals, the company signed a new contract with Cvent in the third quarter to run more virtual events, increasing the ACV from $17,000 to $545,000.
- A multi-national technology company with more than 10,000 employees went from leveraging Cvent only for their flagship conference to now using Cvent for nearly all its internal and external events. This account has grown from $100,000 in 2019 to more than $750,000 in contract value this year, with more than $350,000 coming as expansion in the third quarter. With this expanded multi-year contract, the company has signed on with Cvent to support their event needs through 2023, further highlighting their confidence in the Cvent platform to meet their long-term needs.
- During the quarter, Cvent was also able to successfully expand its contract with a Fortune 500 financial services institute, a public multinational software company, a state education association, a national healthcare association, a state employee retirement agency, and a French consumer products company.
The deals highlighted above demonstrate the long runway Cvent has to sell more solutions inside its global install base.
In August, Cvent hosted its flagship Cvent CONNECT® customer conference in a hybrid environment for the first time, allowing in-person and virtual attendees to experience the power of the Cvent platform first-hand. The event brought together thousands in-person in Las Vegas and online to capitalize on the transformation of the trillion-dollar meetings and events industry. During the event, Cvent CEO & Founder Reggie Aggarwal shared insights on the pandemic-driven innovation and evolution that have transformed the meetings and events industry.
At Cvent CONNECT, the company announced the launch of Cvent Studio, a new solution that delivers powerful live stream and video production capabilities and further expands Cvent’s virtual and hybrid offerings. Cvent Studio enables marketers and planners to produce broadcast quality video content through web-based solutions. The state-of-the-art functionality gives organizations the tools they need to up level their virtual events into immersive, fully branded experiences.
The Company has also continued to roll out new products and expand its industry partnerships, further strengthening the Cvent platform and its positioning as a market leader in the space.
- In August, Cvent expanded its partnership with Amadeus, a leading hospitality technology platform, to increase bookings for small meetings and events. With Cvent Instant Book, currently available as an Early Adopter pilot, planners will be able to easily book small meetings directly through the Cvent platform. The announcement further enhances Cvent’s ability to capitalize on the small meetings and events business.
- The Company also extended its long-standing strategic partnership with the largest global meetings and event industry association, Meeting Professionals International (MPI). Together, Cvent and MPI will continue to deliver educational opportunities and thought leadership content to MPI’s global community of more than 60,000 meeting and event professionals. In addition, Cvent’s technology will be used across MPI events, including its signature events, MPI World Education Congress (WEC) and the European Meetings and Events Conference (EMEC).
Cvent was also recognized during the quarter for its industry-leading technology and employee experience. In August, the Cvent Attendee Hub® – Cvent’s live engagement platform for virtual, in-person and hybrid events – was selected as the winner of the “Event Management Innovation” award in the fourth annual MarTech Breakthrough Awards. The awards program is conducted by MarTech Breakthrough, a leading market intelligence organization that recognizes the top companies, technologies and products in the global marketing, sales and advertising technology industry today. With more than 2,850 nominations from 17 countries around the world, the win puts Cvent in distinguished company with other market-leading brands including Nielsen, Adobe, and Mailchimp, among others. Additional accolades include:
- Most Innovative Company of the Year, Stevie International Business Awards, Bronze
- Technology Innovation – Meetings & Events, Cvent Attendee Hub®, Business Travel Awards Europe
- Best Virtual Events Platform, Micebook V Awards
- Premier Sales Employer, Institute for Excellence in Sales
Third Quarter Financial Results
On November 8, Cvent reported total third quarter revenue of $134.1 million, an increase of 13.1% from the comparable period in 2020 and 3.6% higher than guidance. Within the $134.1 million, Event Cloud revenue was $92.5 million, an increase of 27.2% from the comparable period in 2020. Net loss was $26.1 million compared to $14.4 million in the comparable period in 2020 and adjusted EBITDA was $23.4 million, representing an adjusted EBITDA margin of 17.5%, compared to $36.2 million, or an adjusted EBITDA margin of 30.5% in the comparable period in 2020.
As a result of strong performance through September 30, 2021, and the robust opportunity ahead, Cvent raised its fourth quarter and full year 2021 guidance in conjunction with the third quarter earnings release. Fourth quarter revenue is now expected to grow 21.7% year-over-year at the mid-point versus prior guidance for 20.1%; and for the full year, Cvent is now expecting 3.2% revenue growth at the midpoint versus prior guidance for 1.7%. Adjusted EBITDA was raised as well. For the fourth quarter, it is now expected to be in the range of $21.8 million to $22.7 million, or 15.9% of revenue at the mid-point and the full year is expected to be in the range of $92.7 million to $93.6 million, or 18.1% of revenue at the mid-point versus its previous guidance of $90.0 million and 17.7% of revenue.
Pending Transaction with Dragoneer Growth Opportunities Corp. II
On November 12, Cvent announced that Dragoneer’s registration statement on Form S-4 (as amended, the “Registration Statement”), in connection with the previously announced proposed business combination (the “Business Combination”), has been declared effective by the U.S. Securities and Exchange Commission (“SEC”). The Registration Statement provides important information about Dragoneer, Cvent and the Business Combination and can be found on the SEC’s website at https://www.sec.gov under the ticker “DGNS.”
On November 12, Dragoneer commenced mailing the definitive proxy statement and a notice of voting and instruction form, or a proxy card, related to the special meeting (“Special Meeting”) of Dragoneer’s stockholders of record as of the close of business on October 29, 2021 (the “Record Date”). The Special Meeting of stockholders and the vote to approve the business combination will be held on December 7, 2021, at 9:00 a.m., Eastern Time. If the proposals at the Special Meeting are approved, the business combination is expected to close on December 8, 2021, subject to the satisfaction of customary closing conditions.
Cvent’s common stock is expected to be listed on the Nasdaq Global Select Market under the ticker symbol “CVT”, following the close of the business combination.
