Cvent this week released its second quarter earnings report amid the strong return to in-person events around the world. The company continues to report a net loss, but it ended the second quarter with revenues of $161 million, representing 31 percent year-over-year growth, and up from $137.4 million last quarter.
The second quarter revenue exceeded the high end of the company's guidance by $6.8 million and was the highest quarterly revenue in the company’s history. Not many event companies are publicly traded, so Cvent’s earnings reports represent a peek into the health of event tech on the whole.
Many companies that invested heavily in virtual offerings are suffering right now as event programs evolve post-pandemic, but in-person event also leverage event tech, which is largely what Cvent attributes its ongoing growth to.
“Our strong growth was driven by a healthier and more dynamic events industry, where in-person events are quickly returning, while interest in virtual events continues,” said CEO Reggie Aggarwal on the company’s investor call. He went on to remark that it’s become “increasingly clear that in-person events are the bedrock of the event industry” and expects event technology to continue to make up a disproportionate share of overall event spend moving forward.
He shared that RFP volume on the Cvent Supplier Network has steadily increased since the beginning of the year, and during a few weeks in the second quarter, it approached 2019 levels. He also emphasized the value of and demand for all-in-one platforms, which he notes is one of Cvent’s core strengths, as eventprofs look for integrated platforms that can support all event formats.
When looking at the breakdown of Cvent’s main offerings, the Event Cloud experienced 31.6 percent year over year growth in the second quarter of 2022, while the Hospitality Cloud revenue increased 29.8 percent from the comparable period last year.
Overall, Aggarwal pinpointed four main factors driving the company’s growth: a more dynamic events landscape, the importance of Cvent’s platform as organizers look for more flexibility for their total event program, the fact that Cvent is well-positioned to serve the in-person market, and its global scale.
He also noted that digital solutions are enabling event organizers to engage their communities year-round and meet audiences where they are, and that the company is investing heavily in this area as he believes the industry is still in the very early stages of this growth opportunity.
Based on the second quarter results, Cvent has adjusted its full year guidance and now expects total revenue to be between $624.9 million to $628.4 million, representing 20.8 percent year-over-year growth at the mid-point.