Cvent continues to report strong growth, exceeding its Q1 earnings projections made in March 2022.
In its first Q1 earnings call since going public last July, Cvent reports exceeding its Q4 guidance as it continues to achieve strong growth.
CEO Reggie Aggarwal expressed confidence that tailwinds spurred by increasing in-person attendance and market share gains made with software and service innovations will dampen the impact of destabilizing macroeconomic factors like the current record-high cost of energy. As a result, Cvent has updated its financial guidance to anticipate even stronger growth in 2022 than forecasted last quarter.
Given Cvent’s long-held status as a major industry player in the in-person event market segment, its reported increase of 17.1% year-over-year in the first quarter of 2022 for a total of $137.4 million isn’t particularly surprising. Even though that number is 2.9% higher than the higher end of what it estimated for this quarter during its last earnings call, it could be reasonable to chalk that up to a quicker-than-expected post-pandemic recovery.
Similarly, the 17.2% increase in revenue from Hospitality Cloud, Cvent’s vendor SaaS solution, is likely driven by a resurgence in bookings as event planners respond to the pent-up demand for in-person experiences.
But one number stands out and may be a bellwether for Cvent’s future prospects and the state of the event tech industry in general. This quarter, Cvent’s Event Cloud revenue increased to $95.0 million, representing a 17.1% uptick from the comparable period in 2021. It looks like Cvent’s strategic move as a provider of solutions that meet a spectrum of attendee format needs is paying off.
In-person event expertise and a higher demand for full functionality are key drivers for Cvent’s continued growth.
Cvent announced in April that it would be phasing out its CrowdCompass mobile event app at the end of 2022, instead encouraging all of its customers to adopt the Attendee Hub. Aggarwal cited internal data that indicated that 66% of event planners are currently in the process of booking physical space for events, with 40% anticipating planning more events in 2023 than before the pandemic.
At the same time, he noted that “at the average conference, you are seeing 40 to 65% of in-person attendance as opposed to pre-Covid.”
Echoing the conclusion of multiple industry forecasts – that the features enabled by digital applications continue to present compelling advantages for event tech customers – Aggarwal emphasized Cvent’s offerings. “The return to in-person plays to our strength and plays to our one platform.”
New Products Broaden Service Ecosystem
In another move to bolster its status as a leader in the industry, Cvent has continued to invest in developing platforms designed to meet a broad spectrum of event planning needs.
Aggarwal highlighted two new digital tools unveiled at Cvent CONNECT in mid-April, describing them as part of an overall strategy aimed at consolidating and expanding its presence in the new event production paradigm. Though he acknowledged in the earnings call that these ventures do not translate immediately into substantial revenue growth, the expansion of the existing Cvent Supplier network could prove to be a game-changer when it comes to attracting event profs who are looking to master the complex dynamics of an event with multiple channels of engagement. “We believe these marketplaces make Cvent even more embedded into the industry, “ he asserted, noting that “this functionality makes us a one-stop shop.”
The Vendor Marketplace will enhance its strategic direction towards providing support for planners as they develop a “Total Event Program,” which incorporates concurrent in-person, hybrid, and virtual experience design. Similarly, the App Marketplace promises to help event planners source tools from other SaaS providers that will integrate seamlessly into Cvent products, which may provide an added incentive for event planners and firms looking to minimize friction for attendees and those on the back end of event tech alike.
Similarly, Cvent has beefed up its offerings on the Hospitality Cloud to provide advantages to its venue customer base. Referencing the estimated 20,000 open positions in hotel sales in North America, Aggarwal pointed to the emerging demand for more time-efficient solutions for connecting event planners with event venue operators. He attributed anticipated continued growth for this aspect of Cvent operations to beefed-up features like photorealistic 3D tours of venues that are oriented towards a better quality of information for event profs: “Where the honey is, the bees will come.”
“Total Event Program Support” Key Factor in Cvent’s Strategy
Citing a return to in-person, Cvent’s promise to support planners across a total event program and expand its service ecosystem, CFO Billy Newman expressed confidence that the legacy player is well-positioned to capture an outsized market share of an estimated $30 billion total attainable market in 2022.
In a detailed discussion of current trends that was remarkable for its candor, both Newman and Aggarwal repeatedly asserted that continued uptake of existing innovations and a reinvigorated commitment to investing in further software development will continue to propel Cvent’s strong growth.
As a top-tier player in the event tech industry, Cvent’s earnings report and its stated strategic direction are important indicators of where the event industry is headed. Based on its analysis of the shape of things to come, Cvent is throwing its weight behind developing and marketing a suite of products positioned to support planners who will work across a spectrum of engagement channels designed to drive engagement before, during, and after an event.
Cvent continues to report strong growth, exceeding its Q1 earnings projections made in March 2022.
In its first Q1 earnings call since going public last July, Cvent reports exceeding its Q4 guidance as it continues to achieve strong growth.
CEO Reggie Aggarwal expressed confidence that tailwinds spurred by increasing in-person attendance and market share gains made with software and service innovations will dampen the impact of destabilizing macroeconomic factors like the current record-high cost of energy. As a result, Cvent has updated its financial guidance to anticipate even stronger growth in 2022 than forecasted last quarter.
Given Cvent’s long-held status as a major industry player in the in-person event market segment, its reported increase of 17.1% year-over-year in the first quarter of 2022 for a total of $137.4 million isn’t particularly surprising. Even though that number is 2.9% higher than the higher end of what it estimated for this quarter during its last earnings call, it could be reasonable to chalk that up to a quicker-than-expected post-pandemic recovery.
Similarly, the 17.2% increase in revenue from Hospitality Cloud, Cvent’s vendor SaaS solution, is likely driven by a resurgence in bookings as event planners respond to the pent-up demand for in-person experiences.
But one number stands out and may be a bellwether for Cvent’s future prospects and the state of the event tech industry in general. This quarter, Cvent’s Event Cloud revenue increased to $95.0 million, representing a 17.1% uptick from the comparable period in 2021. It looks like Cvent’s strategic move as a provider of solutions that meet a spectrum of attendee format needs is paying off.
In-person event expertise and a higher demand for full functionality are key drivers for Cvent’s continued growth.
Cvent announced in April that it would be phasing out its CrowdCompass mobile event app at the end of 2022, instead encouraging all of its customers to adopt the Attendee Hub. Aggarwal cited internal data that indicated that 66% of event planners are currently in the process of booking physical space for events, with 40% anticipating planning more events in 2023 than before the pandemic.
At the same time, he noted that “at the average conference, you are seeing 40 to 65% of in-person attendance as opposed to pre-Covid.”
Echoing the conclusion of multiple industry forecasts – that the features enabled by digital applications continue to present compelling advantages for event tech customers – Aggarwal emphasized Cvent’s offerings. “The return to in-person plays to our strength and plays to our one platform.”
New Products Broaden Service Ecosystem
In another move to bolster its status as a leader in the industry, Cvent has continued to invest in developing platforms designed to meet a broad spectrum of event planning needs.
Aggarwal highlighted two new digital tools unveiled at Cvent CONNECT in mid-April, describing them as part of an overall strategy aimed at consolidating and expanding its presence in the new event production paradigm. Though he acknowledged in the earnings call that these ventures do not translate immediately into substantial revenue growth, the expansion of the existing Cvent Supplier network could prove to be a game-changer when it comes to attracting event profs who are looking to master the complex dynamics of an event with multiple channels of engagement. “We believe these marketplaces make Cvent even more embedded into the industry, “ he asserted, noting that “this functionality makes us a one-stop shop.”
The Vendor Marketplace will enhance its strategic direction towards providing support for planners as they develop a “Total Event Program,” which incorporates concurrent in-person, hybrid, and virtual experience design. Similarly, the App Marketplace promises to help event planners source tools from other SaaS providers that will integrate seamlessly into Cvent products, which may provide an added incentive for event planners and firms looking to minimize friction for attendees and those on the back end of event tech alike.
Similarly, Cvent has beefed up its offerings on the Hospitality Cloud to provide advantages to its venue customer base. Referencing the estimated 20,000 open positions in hotel sales in North America, Aggarwal pointed to the emerging demand for more time-efficient solutions for connecting event planners with event venue operators. He attributed anticipated continued growth for this aspect of Cvent operations to beefed-up features like photorealistic 3D tours of venues that are oriented towards a better quality of information for event profs: “Where the honey is, the bees will come.”
“Total Event Program Support” Key Factor in Cvent’s Strategy
Citing a return to in-person, Cvent’s promise to support planners across a total event program and expand its service ecosystem, CFO Billy Newman expressed confidence that the legacy player is well-positioned to capture an outsized market share of an estimated $30 billion total attainable market in 2022.
In a detailed discussion of current trends that was remarkable for its candor, both Newman and Aggarwal repeatedly asserted that continued uptake of existing innovations and a reinvigorated commitment to investing in further software development will continue to propel Cvent’s strong growth.
As a top-tier player in the event tech industry, Cvent’s earnings report and its stated strategic direction are important indicators of where the event industry is headed. Based on its analysis of the shape of things to come, Cvent is throwing its weight behind developing and marketing a suite of products positioned to support planners who will work across a spectrum of engagement channels designed to drive engagement before, during, and after an event.