2023-01-06-GP_Bullhound-2022年第三季度全球软件报告_39页_1mb

Q3 2022 Software Sector Summary

Core Content Overview

The Q3 2022 Software sector update by GP Bullhound highlights several key trends and developments, including the rising importance of chatbots, Earned Wage Access (EWA) companies, API-centric security solutions, the evolution of Machine Learning as a Service (MLaaS), and the continued growth of Vertical SaaS. The report also provides insights into M&A activity, private financing, and the current state of software valuations and IPO activity.

Main Trends and Insights

Chatbots Enter Centre-Stage

• Popularity: Chatbots are becoming more popular due to their ability to offer 24/7 customer support at a lower cost.
• Development: Companies are investing in self-learning chatbots to improve the human-like conversational experience.
• Ecosystem Growth: The chatbot ecosystem is expanding, with notable players like atSpoke, Drift, and Netomi leading the way.
• Market Projection: Insider Intelligence predicts that consumer retail spending via chatbots will reach $142bn by 2024.

EWA Companies to Alter Current Financial System

• Definition: EWA (Earned Wage Access) allows employees to access wages immediately after completing work.
• Adoption Drivers: A tight job market and shrinking workforce are key factors driving EWA adoption.
• Employee Retention: 79% of workers are more willing to switch employers if they have access to EWA.
• Fintech Partnerships: Fintech companies like Clair are partnering with traditional financial institutions to offer EWA solutions.

API-Centric Security Solutions

• Rising Importance: The need for API security is growing due to the increasing volume and complexity of APIs.
• Security Challenges: APIs are becoming a primary attack vector, according to Gartner.
• Solution Example: Noname Security provides a comprehensive API security platform, covering discovery, analysis, remediation, and testing.

The Evolution of MLaaS

• Growth Trajectory: ML is following a similar growth path to AI and is expected to see significant growth in the SaaS space.
• MLaaS Demand: AI-based SaaS businesses are increasingly demanding MLaaS for better control over specific use cases.
• Major Players: Amazon SageMaker, Google AI, IBM Watson Studio, and Microsoft Azure ML are integrating ML services into their cloud platforms.
• Market Forecast: The MLaaS market is projected to reach $8.3bn by 2028, with a 43.5% CAGR.

Continued Rise of Vertical SaaS

• Popularity: Vertical SaaS is gaining traction due to its industry-specific functionality and cost efficiency.
• Advantages: It offers cost savings, more efficient integration, lower CAC, and higher ROI compared to traditional SaaS.
• Adoption: Companies are moving from on-premise solutions to cloud-based Vertical SaaS platforms.

Key Transactions in Q3 2022

Investments

• ecovadis: Invested by General Atlantic
• logicbroker: Invested by KI Investment Management
• Typeform: Invested by GP Bullhound Fund V
• MariaDB: Invested by GP Bullhound Fund V
• leadfeeder: Invested by GP Bullhound Fund V
• WHIOOP: Invested by GP Bullhound Fund V
• DuckDuckGo: Invested by GP Bullhound Fund V
• smarp: Invested by GP Bullhound Fund IV
• IF Partnerize: Invested by GP Bullhound Fund IV
• RavenPack: Invested by GP Bullhound Fund IV
• Busu: Invested by GP Bullhound Fund IV
• genially: Invested by GP Bullhound Fund IV
• TRADESHIFT: Invested by GP Bullhound Fund IV

Acquisitions

• echobot: Acquired by Lengow
• netRivals: Acquired by APPTUS
• sellics: Acquired by ASCENTIAL
• APPTUS: Acquired by VOYADO
• WEGLOT: Acquired by partech
• Veeva: Acquired by AGERAS
• RealVNC: Acquired by LIVINGBRIDGE
• Bill.com: Acquired by PSG

Market Activity and Valuations

M&A and Private Placements

• M&A Activity: The market for M&A and buyouts has cooled, with a pullback in global dealmaking.
• Private Placements: Private placements have remained relatively stable across regions.
• Notable M&A Deals:
  • Adobe acquired Figma for $20,000m (50.0x LTM revenue)
  • THOMABRAVO acquired nearmap for $735m (6.6x LTM revenue)
  • Unity acquired ironSource for $4,400m (6.5x LTM revenue)
  • VISTA acquired Avalara for $8,400m (10.6x LTM revenue)
  • THOMABRAVO acquired PingIdentity for $2,800m (9.1x LTM revenue)
  • ALPHA CAPITAL PARTNERS acquired Semantix for $693m (17.9x LTM revenue)
  • globalpayments acquired EVP for $4,000m (6.6x LTM revenue)
  • ITHAX ACQUISITION CRP acquired MONDEE for $- (not disclosed)

Private Financings

• Notable Private Financings:
  • wasabi: $250m investment by L2Point
  • SANDBOXAG: $1,500m investment by FIRST LIGHT
  • celonis: $1,000m investment by QIA
  • DRIVENETS: $262m investment by O2
  • upGrad: $210m investment by BodhiTree
  • GUILD: $265m investment by Wellington Management
  • BLOCKDAEMON: $207m investment by boldstart
  • sumup®: $624m investment by BainCapital
  • Genesis: $220m investment by Accel

IPO Activity and Valuation Trends

• IPO Activity: Software IPOs were suppressed in Q3 2022 due to recession concerns and economic uncertainty.
• Valuation Trends: SaaS valuations dropped below the five-year mean, with a significant disparity between high- and low-growth companies.
• Key Metrics:
  • Net Dollar Retention: The most important determinant of valuation, with higher retention leading to more attractive valuations.
  • Rule of 40%: A benchmark for public SaaS companies, indicating a balance between revenue growth and margins.
  • Free Cash Flow Margin: A key metric for assessing the financial health of SaaS companies.
  • Payback Period: Important for evaluating the return on investment for SaaS solutions.

Notable SaaS Companies and Their Performance

Conclusion

The software sector in Q3 2022 is witnessing a shift towards more specialized and efficient solutions, with chatbots, EWA, and Vertical SaaS leading the way. M&A and private financing activity is still active, but with a noticeable slowdown in global dealmaking. Public SaaS companies are facing valuation pressures due to recession concerns and inflation, with net dollar retention emerging as a critical factor for success. The evolution of MLaaS and the growing need for API security solutions are also shaping the future of the sector.