Publicly Traded SaaS Company Valuations

In December of 2010 I wrote a post titled Publicly Traded SaaS Companies detailing the companies, market cap, quarterly revenues, and number of employees. Since that post the numbers have moved upwards nicely along with a couple being acquired (SuccessFactors and Taleo) and a few new ones going public (Responsys, ExactTarget, and Demandware). Let’s take a look at the current numbers:

  • salesforce.com (NYSE:CRM) – customer relationship management SaaS company.
    Market cap: $21.52 billion
    Last reported quarter’s revenues: $631.9 million
    Employees: 7,785
  • NetSuite (NYSE:N) – enterprise resource planning (accounting, inventory, etc) SaaS company.
    Market cap: $3.45 billion
    Last reported quarter’s revenues: $64.09 million
    Employees:  1,265
  • Constant Contact (NASDAQ:CTCT) – email marketing for small business SaaS company.
    Market cap: $873.79 million
    Last reported quarter’s revenues: $57.53 million
    Employees: 926
  • SuccessFactors – human resources SaaS company.
    Bought by SAP for $3.4 billion
  • Taleo – human resources SaaS company.
    Bought by Oracle for $1.9 billion
  • LogMeIn (NASDAQ:LOGM) – remote machine access SaaS company.
    Market cap: $846.84 million
    Last reported quarter’s revenues: $32.32 million
    Employees: 482
  • LivePerson (NASDAQ:LPSN) – live chat SaaS company.
    Market cap: $899.43 million
    Last reported quarter’s revenues: $36.51 million
    Employees: 524
  • Responsys (NASDAQ:MKTG) – email marketing SaaS company.
    Market cap: $587.27 million
    Last reported quarter’s revenues: $37.24 million
    Employees: 693
  • Demandware (NYSE:DWRE) – ecommerce SaaS company.
    Market cap: $774.98 million
    Last reported quarter’s revenues: ~$15 million
    Employees:  215
  • ExactTarget (NASDAQ:ET) – email marketing SaaS company.
    Market cap: $1.62 billion
    Last reported quarter’s revenues: ~$50 million
    Employees: ~1,100

The companies that get the largest premium are the leaders in their space and have the fastest growth rates. In almost all cases market cap, quarterly revenues, and employees have grown since the last report 16 months ago. Software-as-a-Service continues to be hot.

What else? What are your thoughts on publicly traded SaaS company valuations?

2 thoughts on “Publicly Traded SaaS Company Valuations

  1. Great roundup David. I’d love to see net income added to the metrics too. It would be interesting to see how this has tracked over time as revenues and head count have grown.

  2. Excellent work, thanks for sharing. i’ve used salesforce.com and so am acquainted with it. it’s market cap seems awfully high, can’t imagine it’s earnings growing into that market cap anytime soon.

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