• Full Year 2022 total revenue of $1,458.6M, up 36% year over year


• Q4 2022 total revenue of $389.1M, up 23% year over year


• Full Year 2022 subscription revenue of $1,223.7M, up 41% year over year


• Q4 2022 subscription revenue of $327.6M, up 26% year over year


• Total remaining performance obligations[1] of $2,174.6M, up 25% year over year


• Next 12 months remaining performance obligations of $1,202.3M, up 19% year over year

PROVO, Utah and SEATTLE Jan. 25, 2023– Qualtrics (NASDAQ: XM), the leader and creator of the experience management (XM) category, today announced financial results for the fourth quarter and fiscal year ended December 31, 2022.

“Qualtrics delivered solid results in Q4, capping off a very strong year of growth and significant operating margin expansion,” said Qualtrics CEO Zig Serafin. “Qualtrics continues to be critical to helping companies build deeper relationships with their employees and customers to increase revenue and operate more efficiently in a challenging market.”

Fourth Quarter 2022 Financial Highlights:

• Revenue: Total revenue for the fourth quarter was $389.1 million, up from $316.0 million one year ago, an increase of 23% year over year. Subscription revenue for the fourth quarter was $327.6 million, up from $259.0 million one year ago, an increase of 26% year over year.


• Operating Income (Loss) and Margin: Fourth quarter operating loss was $(246.6) million, compared to $(306.1) million one year ago. Non-GAAP operating income for the fourth quarter (see discussion of non-GAAP operating income and margin measures below) was $23.9 million, compared to non-GAAP operating income of $0.3 million one year ago. For the fourth quarter, GAAP operating margin was (63)% and non-GAAP operating margin was 1%, compared to GAAP operating margin of (97)% and non-GAAP operating margin of 0.1% one year ago.


• Net Income (Loss) and Net Income (Loss) Per Share: Fourth quarter net loss was $(256.4) million, or $(0.43) per share, compared to $(309.8) million, or $(0.56) per share in the fourth quarter of fiscal year 2021. Non-GAAP net income (see discussion of the non-GAAP net income (loss) measure below) for the fourth quarter was $16.0 million, or $0.03 per share, compared to non-GAAP net loss of $(39.4) million, or $(0.07) per share in the fourth quarter of fiscal year 2021.


• Cash and Cash Equivalents: Total cash and cash equivalents as of December 31, 2022 and 2021 were $719.9 million and $1,014.5 million, respectively.

Full Year 2022 Financial Highlights:

• Revenue: Total revenue for the fiscal year ended December 31, 2022 was $1,458.6 million, up from $1,075.7 million one year ago, an increase of 36% year over year. Subscription revenue was $1,223.7 million, up from $870.7 million one year ago, an increase of 41% year over year.


• Operating Income (Loss) and Margin: Operating loss for the year was $(1,049.0) million, compared to operating loss of $(1,053.8) million in 2021. Non-GAAP operating income for the year was $57.8 million, compared to $31.9 million in fiscal year 2021. For the fiscal year 2022, GAAP operating margin was (72)% and non-GAAP operating margin was 4%, compared to GAAP operating margin of (98)% and non-GAAP operating margin of 3% one year ago.


• Net Income (Loss) and Net Income (Loss) Per Share: Fiscal year 2022 net loss was $(1,061.5) million, or $(1.82) per share, compared to $(1,059.1) million in fiscal year 2021, or $(2.05) per Non-GAAP net income for the year was $25.0 million, or $0.04 per share, compared to non-GAAP net loss of $(6.0) million in fiscal year 2021, or $(0.01) per share.

Financial Outlook:

Qualtrics is providing guidance for its first quarter ending March 31, 2023 as follows:

• Total revenue between $392 and $394 million.


• Subscription revenue between $333 and $335 million.


• Non-GAAP operating margin between 4% and 5%.


• Non-GAAP net income per share between $0.01 and $0.02 assuming 605 million weighted shares outstanding.

Qualtrics is providing its guidance for its full year ending December 31, 2023 as follows:

• Total revenue between $1,661 and $1,669 million.


• Subscription revenue between $1,406 and $1,414 million.


• Non-GAAP operating margin between 10% and 11%.


• Non-GAAP net income per share between $0.20 and $0.24 assuming 625 million weighted shares outstanding.

The guidance provided above constitutes forward-looking statements and actual results may differ materially. Refer to the “Forward-Looking Statements” safe harbor section below for information on the factors that could cause our actual results to differ materially from these forward-looking statements.

Non-GAAP operating income, non-GAAP operating margin, non-GAAP net income (loss), and non-GAAP net income (loss) per share are non-GAAP financial measures. Additional information on Qualtrics’ reported results, including a reconciliation of the non-GAAP financial measures to their most comparable GAAP measures, is included in the financial tables below. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty of expenses that may be incurred in the future, although it is important to note that these factors could be material to Qualtrics’ results computed in accordance with GAAP.

A supplemental financial presentation and other information can be accessed through Qualtrics’ investor relations website at https://www.qualtrics.com/investors/.

Qualtrics Earnings Call

Qualtrics plans to host a conference call today to review its fiscal fourth quarter and full year 2022 financial results and to discuss its financial outlook. The call is scheduled to begin at 3:00 p.m. MT/5:00 p.m. ET. Investors are invited to join the webcast by visiting: https://qualtrics.com/investors/events. The webcast will be available live, and a replay will be available following completion of the live broadcast for approximately 90 days.