Momentive Inc. (NASDAQ: (MNTV) stock gained by 1.47% at last close whereas the MNTV stock price declines by 14.00% in the pre-market trading session. Momentive is a pioneer in agile experience management, creating strong, purpose-built services that redefine AI by combining the greatest aspects of humans and technology.
MNTV stock’ Financial Outcomes
Momentive announced the financial results for the third quarter of 2021. Given below is the summary:
- The total sales were $114.8 million, up 20% from the previous year. The top end of the previously announced projection range of $112.5 million to $114.5 million was surpassed in revenue.
- The non-GAAP operating margin was 6.5 percent, while the GAAP operating margin was negative 17.1 percent. Non-GAAP operating margin surpassed the high end of the initially given guidance range of 2.0% to 4.0%.
- Operating activities generated $16.7 million in net cash and $14.7 million in free cash flow, for a 14.6 percent and 12.8 percent margin, respectively.
- As of September 30, 2021, cash and cash equivalents were $300.7 million, while the overall debt of $212.2 million, resulting in net cash of $88.5 million.
Zendesk to acquire MNTV
Zendesk and Momentive have reached a deal in which Zendesk would buy Momentive, plus its well-known SurveyMonkey platform. Momentive stockholders will get 0.225 shares of Zendesk stock for every share of Momentive stock, according to the current agreement. Based on the 15-day volume-weighted average price of Zendesk common stock up until and including October 26, 2021, it reflects an implied value of about $28 per outstanding share of Momentive stock.
Moreover,
Zendesk forecasts the merger to be growth accretive in its first entire operating year, bringing Zendesk’s revenue projection to $3.5 billion in 2024, a year ahead of its previous aim. The firms’ respective large client networks and complementary skills are likely to open up considerable opportunities for combined product adoption and enterprise traction for Momentive. To facilitate the merger, Zendesk will reinvest savings from scale efficiencies into enticing growth possibilities. Momentive CEO Zander Lurie will remain in charge of the company’s strong management team following the transaction’s completion.
