Momentive Global Inc.

Good afternoon. Thank you for attending today's Moment of Global Inc. Quarter 1, 2022 earnings call. My name is Amber, and I will be your moderator for today's call. All lines will be muted until the presentation portion of the call comes to an end. There will be an opportunity for questions and answers at the end. If you would like to ask a question, please press star 1 on your telephone keypad at any time. I now have the pleasure of handing the conference over to our host, Gary Fugis, Vice President of Investor Relations with Momentum. Gary, please proceed.

Thank you. Good afternoon and welcome to Momentum Global's first quarter 2022 earnings call. Joining me on today's call are Xander Lurie, CEO, Priyanka Kaur, COO, and Justin Kolombe, CFO. After Xander and Justin's prepared remarks, we'll take your questions. Prior to this call, we issued a press release and shareholder letter with our Q1 2022 financial results and related commentary. These items are posted on our investor relations website at investor.momentive.ai. During the course of this call, management will make forward-looking statements which are subject to various risks and uncertainties, including statements relating to our strategy, investments, revenue, operating margin, and cash flow. Actual results may differ materially from the results predicted, and reported results should not be considered an indication of future performance. A discussion of the risks and uncertainties related to our business is contained in our filings with the Securities and Exchange Commission, in particular, in the section entitled Risk Factors in our quarterly and annual reports, and we refer you to these filings. Our discussion today will include non-GAAP financial measures unless otherwise stated. These non-GAAP measures should be considered in addition to and not a substitute for or in isolation from our GAAP results. A reconciliation of GAAP to non-GAAP results may be found in our earnings release and shareholder letter, which are furnished with our 8-K filed today with the SEC, and may also be found on our IR website. With that, I'll now turn the call over to Xander.

Thank you, Gary, and thank you all for joining us on our first quarterly earnings call since August 2021. The first quarter was all about execution and driving substantial progress on the strategic changes we outlined in our February shareholder letter. Our financial results exceeded the high end of our revenue and profitability guidance ranges. Revenue from our sales-assisted channel grew in excess of 30% year over year for the fourth consecutive quarter. We're actively addressing the transitory headwinds in our self-serve channel. Non-GAAP operating margin improved to 2% from a negative 1% in Q1 2021. And we repurchased 2.4 million Momentum shares through March 31st. We're focused on creating value for our customers and shareholders. We have conviction that the plan we've put in place will accelerate growth and significantly increase profitability. We have work to do, but our market opportunity is massive, our products are getting stronger every quarter, and our hybrid go-to-market strategy is operating at scale. enabling us to meet customers where they want to buy and expand with them over time. Now a bit more on our Q1 highlights. Q1 was a record-rating quarter for our sales-assisted channel, reaching a $165 million revenue run rate. Sales-assisted revenue increased 32% year-over-year, the fourth consecutive quarter of 30-plus percent year-over-year revenue growth. Leading indicators here are outpaced revenue growth, We increased our customer count 55% year-over-year, adding 1,800-plus new customers in the quarter, like Ace Hardware, Bosch, Carfax, Merck, and the US citizenship and immigration services. Our high-velocity sales team is 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 2,100 organizational customers are now spending more than $25,000 per year with Momentum. And 700-plus sales-assisted customers are using multiple products, both metrics increasing significantly year over year. Our core product, what we have 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 that our platform delivers. For instance, in 2018, Box purchased our core product for CX use cases. Over time, Box has expanded into multiple cases, including marketing, enablement, internal comms, and HR. And they're expanding again into our insight solutions. Stories like this are not isolated. It's why average customer sizes for sales-assisted core product customers, excluding our newer high-velocity sales motion, have increased for eight straight quarters and grew 15-plus percent year-over-year in Q1. Similarly, our insight solutions, what we've 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 respondents. The VP of Marketing at a large SaaS company tells us that running research with us is seamless, and getting actionable insights was lightning fast. And a multinational agricultural company loves our automated analysis, which enabled them to launch a study on a Wednesday and complete their presentation by Friday. Our Insight solutions generate our largest deals, largest customers, and most productive sales representatives. And in Q2, we'll begin testing packaging that moves our Insight solution to a subscription model. In our self-serve channel, Q1 revenue growth of 7% was in line with our expectations. As reflected in our 2022 guidance, we're working through two factors to drive durable growth. First, over the past three years, we've focused on aligning price to value for self-serve customers, led by meaningful pricing and packaging experiments to our user base, amending entitlements of both free users and paid users. 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-assisted relationships. Second, we meaningfully shifted focus in 2021 to launch the new Momentum brand, a key tenant of our multi-channel go-to-market strategy to more clearly communicate the value and attributes of our products to customers. We were successful. However, we focused less on supporting the Survey Monkey brand during that period, which was magnified by distractions from the proposed Zendesk 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 Kaur, the plan is threefold. First, generate high-quality user traffic by extending our brand leadership, specifically through new content and SEO strategies. Focus brand initiatives and SEM 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 realize value quickly. It's an achievable set of improvements that we believe will benefit leading growth indicators in the self-serve channels 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 focus 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're out of the gate strong on customer-centric innovation. We've reorganized our R&D organization centralize our product strategy, and prioritize our roadmap around a focused set of opportunities. Our core product is the foundation. It delivers value for customers of all sizes across myriad use cases, feeds our respondent panel, and provides intelligence on what features and use cases our customers value most. We are focused on strengthening our foundational authoring 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're planning to fuel the momentum we've seen in our insight solutions by deepening existing solutions in market, 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 to functionality and innovation velocity benefits over time. Similarly, we've made significant progress in a short period of time in our go-to-market strategy and execution. We've 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-assisted channels. Resources are aligned and executing on simplifying our positioning and web services under two brands, Momentus and SurveyMonkey. And we're seeing early success in our focus on existing customer expansion. one of our most efficient and profitable go-to-market motions. In 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 Schoenstein, and Chief Customer Officer, Ken Ewell. Finally, the leadership and organizational changes we made are working. Our streamlined 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 distractions 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 balanced growth and expanding margins, we like our chances. I'll now turn the call over to Justin, who will more deeply review our Q1 financial results and outlook.