GP_Bullhound-2021年Q1全球软件报告（英文）-2021.6-34页_1mb

Q1 2021 Software Sector Summary

Core Content and Trends

• Beacon Technology Growth: Beacon technology is experiencing rapid adoption across various industries, particularly in retail, education, transportation, healthcare, and hospitality. It enables highly personalized customer experiences through location-based data integration, with the market expected to grow significantly.

• SaaS Bloat and Consolidation: As the SaaS market grows, enterprises are increasingly focused on managing their complex tech stacks. Solutions for SaaS integration and management are emerging, with a push towards consolidated, simplified, and seamless software ecosystems.

• SME Digitisation: SMEs are accelerating the implementation of core HR software to improve efficiency, attract talent, and adapt to remote work environments. This shift indicates a broader recognition of HR as a critical function for digital transformation.

• Onboarding as Differentiation: With increasing SaaS competition, companies are focusing on providing full-stack onboarding experiences to enhance customer retention and satisfaction. This trend is driven by the need to offer a more integrated and user-friendly experience.

• Micro-SaaS Rise: Micro-SaaS businesses are gaining traction due to their narrow focus, lean teams, and low costs. Developers are creating specialized platforms and tools that allow for greater customization and cost efficiency for customers.

• MarTech Consolidation: The MarTech space saw a wave of large transactions in Q4 2020 and Q1 2021. Companies in customer engagement and digital experience management are becoming more acquisitive, with CDPs playing a central role in the MarTech stack.

Key Transactions in Q1 2021

Investment Banking

• Cleanshelf sold to LeanIX on Mar-21 with a TTV of $20M.
• IF Partnerize acquired by AKKR on Dec-19 with a TTV of $45M.
• Unomalu sold to Logic Monitor on Jan-20 with a TTV of $30M.

Investment Management

• Discord invested in by GP Bullhound Fund V on Mar-21 with a TTV of $275M.
• Klarna invested in by GP Bullhound Fund IV.
• Playtomic invested in by GP Bullhound Fund IV.
• Optimizer Invest invested in by GP Bullhound Fund IV.
• Spotify invested in by GP Bullhound Fund III.
• Slack invested in by GP Bullhound Fund IV.
• Unity invested in by GP Bullhound Fund IV.
• TradeShift invested in by GP Bullhound Fund IV.

SaaS Index Insights

• SaaS Valuations: As of 31 March 2021, the SaaS Index is trading at 16.3x trailing 12-month revenues, which is 53% above the 5-year average. The index is also trading at 13.0x next 12-month revenues, a 47% increase over the 5-year average.

• Retention as a Valuation Driver: The "GPB SaaS Score" (revenue growth + FCF margin + net dollar retention) highlights that companies with higher retention rates are trading at more attractive valuations.

• Rule of 40%: Companies that meet or exceed the Rule of 40% (revenue growth + gross margin ≥ 40%) are showing strong performance, indicating a balance between growth and profitability.

Key Metrics for SaaS Investors

• Revenue YoY Growth: A significant indicator of company performance and market strength.
• Payback Period: Reflects the time it takes for a company to generate returns on investment.
• Free Cash Flow Margin: Measures the proportion of cash generated from operations after all expenses.
• Net Dollar Retention: Highlights customer retention and upsell potential, crucial for long-term value.

Public Company Comparisons

Quotes from Industry Leaders

• Stefan von Lieven, CEO of artegic: Highlights the complexity of customer-centric communication and the importance of real-time personalization and automation in achieving better results.
• Brian Rue, CEO of Rollbar: Emphasizes the need for continuous code improvement and the role of real-time AI in enabling faster releases and better customer experiences.
• David Sanderson, CEO of Reelgood: Points out the trend of aggregators emerging in fragmented industries, similar to Kayak and Trulia, to serve consumer interests effectively.

Summary of Investment Activity

• Investment Banking Transactions:

  • IF Partnerize acquired by AKKR on Dec-19 for $45M.
  • Signavio acquired by Apax Digital on Jul-19 for £157M.
  • Unomalu sold to Logic Monitor on Jan-20 for $30M.

• Private Financings:

  • Sense raised $125M from DI Capital Partners on Mar-30.
  • ServiceTitan raised $500M from Sequoia & TigerGlobal on Mar-29.
  • Incridetbuild raised $140M from Insight Partners on Mar-17.
  • Airtable raised $270M from Greenoaks Capital Partners on Mar-15.
  • Clari raised $150M from SilverLake on Mar-03.
  • Matillion raised $100M from Lightspeed on Feb-16.
  • Personio raised $125M from Index Ventures & Meritech on Jan-17.
  • Calendly raised $350M from OpenView on Jan-27.

M&A Activity in Q1 2021

• SANG MA acquired Star2Star Communications on Mar-31 for $560M (EV/Rev: 7.0x).
• THOMABRAVO acquired Calabrio on Mar-23 for $1,000M (EV/Rev: N/A).
• APPRISS Knowledge for Good acquired PatientPing on Mar-23 for $500M (EV/Rev: N/A).
• Lightspeed acquired Vend on Mar-11 for $350M (EV/Rev: 10.3x).
• THOMABRAVO acquired Talend on Mar-10 for $2,838M (EV/Rev: 9.0x).
• XETO acquired Planday on Mar-04 for $221M (EV/Rev: N/A).
• CrowdStrike acquired Humio on Feb-18 for $392M (EV/Rev: N/A).
• Zillow acquired ShowingTime on Feb-10 for $500M (EV/Rev: 20.0x).
• Match acquired Hyperconnect on Feb-09 for $1,725M (EV/Rev: 8.2x).

Summary of Key Insights

• The Software sector is witnessing a shift towards more integrated, efficient, and customer-centric solutions.
• Beacon technology and SaaS management are becoming increasingly important for enterprises.
• SMEs are adopting HR software to support remote work and improve operational efficiency.
• Onboarding is becoming a key differentiator in the SaaS space.
• Micro-SaaS is gaining traction due to its cost-effective and specialized nature.
• MarTech is consolidating, with CDPs playing a pivotal role in customer data management.
• SaaS valuations remain strong, with retention being a key determinant of value.
• Investment activity in Q1 2021 was robust, with notable deals in both public and private markets.