Case Study

Cvent

The global leader in event management software.
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"Throughout our various iterations as a public company, TDM were one of my favourite shareholders. I saw them as a true partner who invested a huge amount of time in understanding our business. This allowed them to be very thoughtful in their views, often providing sound advice through their long term shareholder lens. Above all else, they are great people."

REGGIE AGGARWAL, FOUNDER & CEO, CVENT

Cvent is the global leader in event management software, enabling event planners and marketers to arrange and execute large in-person, virtual, and hybrid events, conferences, and meetings. It originally listed on NYSE in 2013.

TDM initiated a position in Cvent in 2014, and by early 2016, in the midst of the worst start to the year in Wall Street history, and a share price that had halved in a month, it became our largest position. It displayed all the qualities that we love in vertical software, and despite its scale was barely penetrating a massive and under-digitised end market.

Evidently, we were not the only ones who thought it had been unduly punished by public market investors – Vista Equity Partners took the business private at a 70% premium by April, valuing the business at US$1.65b

Cvent relisted on Nasdaq in July 2021 via a merger with the Dragoneer Investment Group sponsored SPAC, with TDM participating via a PIPE (Private Investment in Public Equity). Sadly, our ownership was again short lived, with Blackstone taking the business private in March 2023 for US$4.6b.

Growth

Having been bootstrapped, Cvent exhibited incredible efficiency to grow as quickly as it did. Across our near nine years of interrupted ownership, the business grew revenue and earnings over 4x.

This growth was underpinned by strong product development capabilities across the platform. A great example of Cvent’s vitality was seen during the pandemic when over a thousand people within its product and technology teams were pivoted away from live events to build a virtual event platform. It was launched within six months and accounted for c.15% of revenue within a year.

The revenue graph below omits two years of Vista ownership due to no available data.

No Data Found

People and Culture

Cvent was founded in 1999 by current CEO Reggie Aggarwal alongside three co-founders. When we invested (again) in 2021, Cvent’s management team members were among the most experienced and tenured cloud software executives globally, with 9 of the 11 original leadership team still with the company. This loyalty is unheard of in fast-growing companies and reflects Reggie’s focus on building a strong and sustainable culture.

Throughout both our investment periods, we developed a trusting relationship with management, providing the long-term ownership lens to many strategic issues. This trust was built throughout our long-term support, particularly in times of extreme market volatility.

Competitive Advantage

Our primary framework for assessing competitive advantage is Hamilton Helmer’s 7 Powers. Find further details in our Four Pillars Framework.

By 2021, Cvent was 5x larger than its nearest competitor and highly profitable, allowing the business to invest in product and platform development far more effectively than its competitors.

Cvent is one of the few enterprise SaaS businesses with an in-built two-sided marketplace, the Cvent Hospitality Cloud, connecting 300k hotels with event planners.

Cvent’s product is very sticky for its core enterprise customers who are very sensitive to data security, platform stability and reliability. For large enterprises running hundreds or thousands of events each year, there is significant friction in adopting a different technology vendor for each event.

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