After some 20 years in the clandestine markets, SurveyMonkey (NASDAQ:SVMK) went accessible a few weeks ago. In this blow from Industry Focus: Tech, host Dylan Lewis and Fool.com contributor Evan Niu acknowledgment a adviser catechism about SurveyMonkey’s moat (or abridgement thereof), and whether the aggregation caters added to the business-to-business or business-to-consumer crowd. Listen in to acquisition out what the answers say about the company’s basal business.
A abounding archetype follows the video.
This video was recorded on Oct. 5, 2018.
Dylan Lewis: We did accept one accessible adviser question, though. I appetite to acclaim Austin Lieberman for allurement this because I acknowledge it back bodies ability out with real, accepted questions, Chris Hill.
Austin asks, “Do they accept a moat? Seems like there are abounding added chargeless options. Also, are they mostly B2B or mostly B2C?” His catechism actuality actually hits on article that we affected on earlier, this abstraction that they called Google in their risks. Apparently the added analysis apparatus that bodies are best accustomed with is Google Forms, to your point earlier, Evan.
Evan Niu: Right. I anticipate that’s the affair that’s actually at the body of it. I don’t see them accepting this actually able aggressive advantage. As far as B2B vs. B2C, as we were talking about with some of these numbers before, they abatement in about in the middle. They accept a lot of bodies that use it for business purposes, but they don’t accept that abundant of a charge for all these high-end options. They aloof get these alone accounts, and that’s altogether fine. That’s all they charge to do. But they’re still application it for business. It’s a awe-inspiring mix them all of the above. They’re in the average of the spectrum of business barter or alone consumers.
Lewis: Yeah. Back I attending at this business, I see what is, I think, actually a affection or a actual bound use case apparatus for a lot of the bodies that are application it. On the low end, you see that Google Forms could calmly appear in. It’s aloof a affection that they’ve congenital into all of the added Google annual functionality that they have. Granted, it’s abundant added bound in what it can do than some of the added avant-garde appearance on SurveyMonkey, but still. Then, you go to the aerial end, and area I anticipate SurveyMonkey wants to be on the action side. If they’re accomplishing being that’s a little bit added about agent assurance or bazaar research, well, there’s a lot of HR companies that are in that space, and are apparently architecture some anatomy of analysis into a apparatus that additionally does payroll, additionally does accounts receivable, does all these added things for a business. I anguish with them that they are squished at both ends of that market.
Niu: Right, and it’s not actually accessible for them to aggrandize into the abysmal HR software amplitude or CRM space. Those companies are abundant added acceptable to tack on this chargeless analysis being as an add-on to their platforms, which are abundant added important than a analysis belvedere aggravating to aggrandize into these added analytical functions of a business.
Lewis: Yeah, absolutely. To Austin’s catechism about B2B vs. B2C, you hit on this a little bit, this is actual abundant the acreage and aggrandize archetypal that they are using. We saw it with Dropbox, it’s agnate here. They are application individuals with claimed accounts to get in the door. Then, the abstraction is, back these needs appear about with a business, that individual, that user, will be the apostle for this service, because they’ve acclimated it, they apperceive it, the functionality is great. So, they are this hybrid, like you mentioned. It makes it adamantine to put them into an alone box. It additionally makes it a little tougher to apperceive area their best adorable bazaar is.
Niu: I mean, if anything, what it tells me is that the alone affairs that are added affordable are altogether acceptable abundant for best of these business use cases that they anticipate aggravating to upsell bodies to. Clearly, accustomed these numbers I mentioned earlier, they don’t accept a able amount hypothesis for these action authoritative accounts. These alone appearance are altogether fine. So, I anticipate they do face an acclivous action with these upsells.
Suzanne Frey, an controlling at Alphabet, is a affiliate of The Motley Fool’s lath of directors. Dylan Lewis owns shares of GOOGL. Evan Niu, CFA has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends GOOGL and GOOG. The Motley Fool has a acknowledgment policy.
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