William Blair initiated research coverage of Cvent Holding Corp. (CVT $8.05), a leading provider of cloud-based event management software.
Analysts Bhavan Suri and Arjun Bhatia estimated the company would generate revenue of $514.5 million in 2021, $614.5 million in 2022, and $756.8 million in 2023. In 2019, Cvent grew revenue by 18% and adjusted EBITDA margin was 19%, approaching a Rule of 40 profile. As pandemic headwinds subside and adoption of Cvent’s virtual module continues to increase, the analysts see potential for a return to pre-pandemic growth levels in the near future.
“Cvent offers a comprehensive, cloud-native, end-to-end platform enabling customers of all sizes and industries to manage each stage of the event management lifecycle,” Suri said. “The platform provides solutions for in-person, hybrid, and virtual events and caters to both event organizers and hospitality vendors. Using Cvent, businesses can easily collect data from their customers, providing valuable and actionable insights to drive revenue. Cvent launched its virtual module in September 2020, which enables its platform to handle virtual and hybrid events in addition to the core capabilities targeted to in-person events. While this module has seen strong early adoption, we expect continued growth on this front as virtual and hybrid events become more prevalent.”
Bhatia said, “Global spending on events is estimated to be over $1.1 trillion, with Cvent pegging its total addressable market at roughly $30 billion. We believe this large opportunity has room to grow as we see the market in the early stages of virtual and hybrid event adoption. With Cvent less than 2% penetrated in this market, we see a long runway for growth opportunities as the company continues to gain traction in the market with its newest virtual offering and continues to expand its platform and customer reach both domestically and internationally.”
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Current Ratings Distribution (as of 1/9/21)
Outperform (Buy): 77%
Market Perform (Hold): 23%
Underperform (Sell): 1%
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Outperform (Buy): 34%
Market Perform (Hold): 12%
Underperform (Sell): 0%
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