2019年Q1全球软件市场展望（英文版）_46页_2mb

GP Bullhound Q1 2019 Software Market Summary

Core Content

GP Bullhound is a leading technology advisory and investment firm that focuses on Software, providing transaction advice and capital to category leaders. The firm publishes quarterly SaaS market reports to offer quantitative insights into public and private market valuations and qualitative insights into company business models, technology, and customer trends. The report highlights key trends in the Software industry, notable M&A deals, and private financings, as well as key SaaS metrics and market analyses.

Main Trends

1. Rise of the Monoclouds

• Major cloud providers such as Adobe, Amazon, Google, Microsoft, and Salesforce are expanding their platforms to become more dynamic across verticals.
• These companies have the financial resources to support strong engineering teams, enabling rapid enhancement of their platforms.
• Startups can partner with cloud providers to offer niche services tailored to the development of cloud ecosystems and product suites.
• Startups can enhance their technological capabilities by offering hosted versions of popular cloud services.

2. Recent Software Transaction Trends

• M&A activity in the enterprise software sector is driven by the desire to integrate new areas of the software stack.
• The median enterprise SaaS deal size increased to $70m in 2018 from $34m in 2017.
• Major players like SAP, IBM, and Twilio are acquiring leading SaaS targets, often at high premiums.

3. Public Market SaaS Analyses

• The SaaS market is showing robustness with current valuations exceeding the five-year mean.
• The "Rule of 40%" highlights that companies with a combined revenue growth rate and un-levered FCF margin above 40% are valued higher by investors.
• Public SaaS companies such as Salesforce, Workday, and ServiceNow are demonstrating strong growth and profitability.

4. SaaS CEO Commentary

• Appetize: CEO Max Roper emphasizes the need for modern POS systems that integrate live data and analytics to improve guest experience and manage rising labor costs.
• Cartegraph: CEO Josh Mallamud discusses the importance of adopting smart devices and consumer-quality software in local government operations.
• Kognity: CEO Hugo Wernhoff notes the potential of SaaS in the education sector to enhance student learning and teacher effectiveness.

5. Key SaaS Metrics

• MRR (Monthly Recurring Revenue): A normalized measurement of recurring revenue, calculated as the number of paying customers multiplied by ARPA (Average Revenue Per Account) per month.
• CAC (Customer Acquisition Cost): Sales and marketing expenses for new customers. Payback periods for SMEs should be 6-12 months, and for enterprise customers 9-15 months.
• CLV (Customer Lifetime Value): Calculated as the NPV of recurring gross profit of a customer minus the initial cost of customer acquisition. CLV for SMEs should be between 3 and 4 years, and for enterprise customers between 5 and 7 years.
• Churn & Renewal Rates: Top companies maintain low Logo Churn (<7%) and MRR Churn (<5%), with ideal Negative Net Churn. MRR Renewal rates for top companies range from 105-110% due to upsells.
• Net Revenue Retention: A key performance metric where >100% indicates that upsells exceed churn.
• EV/Revenue & EV/EBITDA: These are critical valuation metrics, with the SaaS Index showing varied multiples across companies.

Notable Deals

M&A Transactions

• Ultimate Software: Acquired by Hellman & Friedman for $10.875bn, with an EV/Revenue of 9.4x.
• SendGrid: Acquired by Twilio for $2.02bn, with an EV/Revenue of 13.4x.
• Red Hat: Acquired by IBM for $35.69bn, with an EV/Revenue of 10.7x.
• PlanGrid: Acquired by Autodesk for $875m.
• Qualtrics: Acquired by SAP for $8bn.
• Veracode: Acquired by Thoma Bravo for $950m.
• First Data: Acquired by Fiserv for $37.7bn, with an EV/Revenue of 2.7x.
• Toast: Acquired by T. Rowe Price for $1.4bn.
• ServiceTitan: Acquired by Index Ventures for $165m.

Private Financings

• Mambu: Raised $35m from Bessemer Venture Partners.
• DoorDash: Raised $400m from Temasek.
• Databricks: Raised $250m from Andreessen Horowitz.
• Stripe: Raised $100m from TigerGlobal.
• Acorns Invest the Change: Raised $105m from NBC Universal.
• Samsara: Raised $100m from Andreessen Horowitz.
• BlaBlaCar: Raised $114m from SNCF.
• Cato Networks: Raised $55m from Greylock Partners.
• CloudEndure: Acquired by AWS for $200m+.
• Cirrus Insight: Acquired by Silver Lake for $1.4bn.

Market Valuations

• The GP Bullhound SaaS Index provides insights into market valuations, showing that current valuations are higher than the five-year mean.
• The report highlights that the SaaS market is becoming more dynamic and consolidated, with a focus on growth and profitability.

Conclusion

The Software industry in Q1 2019 is characterized by a growing emphasis on cloud integration, M&A activity, and the importance of SaaS metrics. Major players are investing in expanding their SaaS offerings and acquiring niche companies to strengthen their platforms. Startups are finding opportunities to partner with cloud providers and offer specialized solutions. The report also underscores the importance of efficient customer acquisition and retention, as well as the potential of SaaS in various sectors, including education and retail.