GP_Bullhound-2019年Q1全球软件市场展望英文版-20195-46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. This report provides insights into the public and private SaaS market valuations and business model trends. It highlights the key trends and notable transactions in the software industry during Q4 2018 and Q1 2019.

Main Points

1. Key Sector Takeaways

• The SaaS market is experiencing growth in both M&A and private financing.
• Tech giants are acquiring SaaS companies to expand their enterprise software portfolios.
• The Zero Trust Cloud Security Model is becoming an industry standard.
• The Salesforce AppExchange is a significant driver of growth for the Salesforce ecosystem.
• New-age POS solutions are enhancing customer engagement in retail.
• HCM (Human Capital Management) software is a growing focus, especially with the help of private equity roll-ups.

2. Recent Software Transaction Trends

• M&A activity has increased, with a median enterprise SaaS deal size rising to $70m in 2018 from $34m in 2017.
• Major acquisitions include Workday acquiring Adaptive Insights for $1.5bn, Adobe acquiring Marketo and Magento for a total of $6.3bn, and Salesforce acquiring MuleSoft for $4.9bn.
• Private equity firms are playing a key role in consolidating the HCM software space.

3. Public Market SaaS Analyses

• The SaaS market is robust, with valuations higher than the five-year mean.
• Companies that meet the Rule of 40% (revenue growth + FCF margin > 40%) are valued higher by investors.
• Horizontal SaaS companies generally have lower growth and valuation multiples compared to vertical-specific SaaS providers.

4. SaaS CEO Commentary

• Appetize: Focuses on modern POS, inventory, and analytics solutions for enterprises. Their CEO emphasizes the need for intuitive tools and better guest experience.
• Cartegraph: Provides SaaS solutions for local governments to manage assets. Their CEO highlights the impact of demographic trends on technology adoption.
• Kognity: Offers digital textbooks that adapt to learning needs. Their CEO states that SaaS has the potential to significantly impact the education sector.

5. Key SaaS Metrics

• MRR (Monthly Recurring Revenue): A normalized measurement of recurring revenue, calculated as the number of paying customers multiplied by ARPA (Annual Recurring Payment Amount).
• CAC (Customer Acquisition Cost): S&M expenses for new customers, typically measured in months.
• CLV (Customer Lifetime Value): Calculated as the NPV of recurring gross profit of a customer minus the initial cost of customer acquisition.
• Churn & Renewal Rates: Important for measuring customer retention and business performance. Top companies have low churn and high renewal rates.
• Burn Rate & Free Cash Flow: Essential for understanding capital efficiency and growth potential.

Notable Deals

SaaS IPOs and Listings

• Weimob (微盟): Listed in Q1 2019 (HKG: 2013), offering $107.8m, with a 17.4% increase from IPO price.
• PlanGrid: Listed in Q4 2018 (NYSE:PLAN), offering $263.5m, with a 93% increase from IPO price.
• Elastic: Listed in Q4 2018 (NYSE:ESTC), offering $252.0m, with a 146% increase from IPO price.
• Expected 2019 IPO Filings: Several large filings are anticipated, including Cloudflare, Stripe, Robinhood, Palantir, and Rackspace.

Appendix Highlights

• GP Bullhound SaaS Index: Provides market valuations and performance data.
• Software Public Comparables by Category: Offers insights into public company valuations and performance across various sectors.
• Overview, Software Credentials & Team: Details about the firm's team and their expertise in the software market.

Summary

The report outlines the current trends in the SaaS market, emphasizing the growth of M&A activity, the expansion of cloud-based solutions, and the increasing importance of metrics such as MRR, CAC, and CLV. It also highlights the strategic focus on specific sectors like HCM, POS, and cloud security, and showcases notable deals and IPOs that have shaped the market in recent quarters.