SAP’s $8 billion acquisition of SurveyMonkey competitor Qualtrics has breathed brand new life into the survey software space, Zander Lurie, the CEO of SurveyMonkey parent SVMK Inc., told CNBC on Wednesday.
“SAP’s a big company, as well as I think This kind of $8 billion acquisition validated just how big This kind of category is usually,” Lurie told CNBC’s Jim Cramer in an exclusive interview. “This kind of is usually a multi-multi-billion-dollar global category. There are hundreds of thousands of organizations who need to buy enterprise software to measure the sentiment of their employees [as well as] their customers.”
Speaking after SVMK’s third-quarter earnings report sent shares of the software provider up over 13 percent in Wednesday’s trading session, Lurie added in which he was “all in favor” of the cost SAP paid for Qualtrics.
Qualtrics, a direct SurveyMonkey competitor, was reportedly planning to go public at a value of roughly $6 billion before SAP stepped in. right now, Qualtrics’ $8 billion cost tag may make investors think twice about how to value SVMK, which currently incorporates a $1.6 billion market cap. SAP declined to comment on This kind of story.
SAP’s size also didn’t seem to worry the SVMK chief, who said on “Mad Money” in which even Alphabet’s Google, which offers its own data-collection software, “is usually not a competitor.”
“If you look at our competitor [Qualtrics] here, they’re going to be a division of SAP, a large European company,” he told Cramer. “We’re steering into where Microsoft as well as Salesforce as well as Adobe as well as Google have real market leadership. I think, coming from a cultural standpoint, This kind of’s going to be a real advantage for us.”
Salesforce Ventures invested in SVMK at the initial public offering cost of $12 a share, close to where the stock closed on Wednesday. The support has proved lucrative for SVMK, which is usually “going to school on [Salesforce.com chief Marc] Benioff’s playbook” as well as partnering with the cloud giant’s customers on product development, Lurie said.