Cvent, Inc. (NYSE:CVT), a leading cloud-based enterprise event management platform, today announced it is intensifying its focus and resources on its corporate event management solutions and group business platform for the hospitality industry. Consistent with this strategic focus, Cvent announced the sale of its consumer ticketing assets to Vendini, Inc., a San Francisco based consumer ticketing company. The divestiture includes the consumer ticketing line of solutions as well as the customer contracts, technology, and intellectual property underlying those solutions.
“With the success of our corporate event cloud and hospitality cloud solutions in the marketplace, the divesture of our consumer ticketing assets will enable us to focus more of our attention, resources and efforts on the corporate and enterprise market,” said Reggie Aggarwal, Chief Executive Officer of Cvent.
Aggarwal added, “While our consumer ticketing solution was generating strong revenue growth, it was not core to our corporate focus. This sale will enable us to redeploy resources to more strategic areas of our business that we believe can help us maximize shareholder value over time. We would like to thank all our consumer ticketing employees for their hard work and dedication to Cvent and we wish them success and growth at Vendini. We believe this move is in the best interest of our consumer ticketing clients, our transitioned employees, and our shareholders.”
Financial Impact on Previously Issued Fourth Quarter and Full Year 2015 Guidance
The company previously issued revenue guidance of $50.3 million to $50.7 million for the fourth quarter of 2015 and $187.1 million to $187.5 million for full year 2015, and the divesture is expected to reduce revenue by approximately $0.8 million relative to that guidance. The company does not expect the divestiture to have a significant impact on previously provided guidance for adjusted EBITDA and non-GAAP net income for the fourth quarter or full year 2015.
However, GAAP net loss for those periods is now anticipated to be greater than previously provided guidance of a loss of $(5.2) million to $(4.8) million in the fourth quarter of 2015, and a loss of $(12.4) million to $(12.0) million for full year 2015, as the company expects to record a GAAP loss of approximately $5 million associated with the asset sale. Additionally, since we intend to reallocate the resources historically invested in the ticketing business to more strategic areas, the company does not anticipate a significant impact on 2016 profitability.
Additional details regarding the historical financial contribution from the divested product line are available in the 8-K filed today with the U.S. Securities and Exchange Commission.