• Q1 2023 total revenue of $409.8M, up 22% year over year
• Q1 2023 subscription revenue of$339.8M, up 21% year over year
• Total remaining performance obligations of $2,135.1M, up 21% year over year
• Next 12 months remaining performance obligations of $1,206.0M, up 17% year over year

 Qualtrics (NASDAQ: XM), the leader and creator of the Experience Management (XM) category, today announced financial results for the first quarter ended March 31, 2023.

First Quarter 2023 Financial Highlights:

• Revenue: Total revenue for the first quarter was $409.8 million, up from $335.6 million one year ago, an increase of 22% year over year. Subscription revenue for the first quarter was $339.8 million, up from $280.8 million one year ago, an increase of 21% year over year.
• Operating Income (Loss) and Margin: First quarter operating loss was $(253.8) million, compared to $(290.5) million one year ago. Non-GAAP operating income (see discussion of non-GAAP operating income and margin measures below) was $21.6 million, compared to non-GAAP operating income of $4.1 million one year ago. For the first quarter, GAAP operating margin was (62)% and non-GAAP operating margin was 5%, compared to GAAP operating margin of (87)% and non-GAAP operating margin of 1% one year ago.
• Net Income (Loss) and Net Income (Loss) Per Share: First quarter net loss was $(259.0) million, or $(0.43) per share, compared to $(292.3) million, or $(0.51) per share in the first quarter of fiscal year 2022. Non-GAAP net income (see discussion of the non-GAAP net income measure below) for the first quarter was $14.3 million, or $0.02 per share, compared to non-GAAP net income of $3.4 million, or $0.01 per share in the first quarter of fiscal year 2022.
• Cash and Cash Equivalents: Total cash and cash equivalents as of March 31, 2023 was $806.7 million.

Confirming Status of Definitive Merger Agreement

In March 2023, Qualtrics announced that it had reached a definitive agreement to be acquired by Silver Lake Partners in partnership with Canadian Pension Plan Investment Board (CPP Investments) (“Merger”). The transaction is expected to close in the second half of 2023, subject to the satisfaction of customary closing conditions, including the receipt of the requisite regulatory approvals.

Q1 Business Highlights
• Formed new relationships and expanded with global organizations including DISH, LinkedIn, Banco Compartamos, Lumen Technologies, ISS Worldwide, State Employees’ Credit Union, Dairy Queen and PayPal.
• Launched 18 new products and major features, including:
◦ A set of purpose-built applications for the frontline—every physical or digital intersection between a customer and a company—including Customer Journey Optimizer and Digital Experience Analytics
◦ Real-time Brand Intelligence and Research Hub, innovations that leverage the power of Qualtrics’ advanced AI to provide 24/7 insights on how marketing activations are driving customer acquisition and engagement.
• Expanded partnerships with Twilio, Five9 and Merkle to bring Qualtrics experience data and operational data together and extend the power of the XM Platform to drive critical business decisions.
• Hosted X4, the Experience Management Summit, gathering in Salt Lake City more than 10,000 attendees from 52 countries—with 120+ breakout sessions, more than 64 hours of streaming content and business and celebrity speakers including Delta CEO Ed Bastian, Martha Stewart and Malala Yousafzai.

Conference Call and Financial Outlook

Qualtrics will not be holding a conference call or providing a financial outlook due to the company’s pending transaction with Silver Lake Partners in partnership with CPP Investments.