Public Company SaaS Valuations

Periodically I like to take a quick snapshot of the public company SaaS valuations (see 2012 and 2010). With Marketo having a big IPO last week and ChannelAdvisor just pricing their IPO today, it’s a good time to see where things stand compared to my last SaaS valuations post 13 months ago.

  • salesforce.com (NYSE:CRM) – customer relationship management SaaS company.
    Market cap: $26.82 billion
    Last reported quarter’s revenues: $834.7 million
    Employees: 9,800
  • NetSuite (NYSE:N) – enterprise resource planning (accounting, inventory, etc) SaaS company.
    Market cap: $6.58 billion
    Last reported quarter’s revenues: $91.6 million
    Employees:  1,953
  • Constant Contact (NASDAQ:CTCT) – email marketing for small business SaaS company.
    Market cap: $456.9 million
    Last reported quarter’s revenues: $68.2 million
    Employees: 1,162
  • LogMeIn (NASDAQ:LOGM) – remote machine access SaaS company.
    Market cap: $601.3 million
    Last reported quarter’s revenues: $37.4 million
    Employees: 565
  • LivePerson (NASDAQ:LPSN) – live chat SaaS company.
    Market cap: $505.6 million
    Last reported quarter’s revenues: $42.5 million
    Employees: 748
  • Responsys (NASDAQ:MKTG) – email marketing SaaS company.
    Market cap: $478.8 million
    Last reported quarter’s revenues: $48.5 million
    Employees: 866
  • Demandware (NYSE:DWRE) – ecommerce SaaS company.
    Market cap: $887.5 million
    Last reported quarter’s revenues: $20.5 million
    Employees:  298
  • ExactTarget (NASDAQ:ET) – email marketing SaaS company.
    Market cap: $1.6 billion
    Last reported quarter’s revenues: $88.9 million
    Employees: 1,673
  • Marketo (NASDAQ:MKTO) – marketing automation SaaS company.
    Market cap: $882.8 million
    Last reported quarter’s revenues: $19.7 million
    Employees: 373
  • ServiceNow (NYSE:NOW) – IT asset management SaaS company.
    Market cap: $4.9 billion
    Last reported quarter’s revenues: $85.9 million
    Employees: 1,077
  • Workday (NYSE:WDAY) – HR and financial management SaaS company.
    Market cap: $10.9 billion
    Last reported quarter’s revenues: $81.5 million
    Employees: 1,750

SaaS shows no signs of slowing down as a growth sector and the market valuations reflect it. Salesforce.com continues to dominate in terms of size and scale with two of the newer entrants, ServiceNow and Workday, having massive revenue multiples and expectations of amazing growth.

What else? What are some other thoughts on public company SaaS valuations?

2 thoughts on “Public Company SaaS Valuations

  1. I would add to your great SaaS list Vocus (VOCS) @ $506M, Cornerstone on Demand (CSOD) @ $2.04B, Intuit (INTU) @ $17.3B, Ultimate Software (ULTI) @ $3.09B, Concur Technologies (CNQR) at $4.54B, SPS Commerce (SPSC) @ $772M. Thanks. Pierce

  2. David,

    What would make your post even more insightful is if you also displayed the most important number for any business and that is the profit they make.

    If you did this you would quickly see that the vast majority of these firms are either recording increasingly wider loses or at best just breaking even.

    For example, Salesforce.com (the golden child of the cloud market) is heading for a 3 year straight run of recording loses.

    If you are a enterprise who has bought solutions from such vendors you should be deeply concerned about the future of many such firms as at the end of a day if you cant make money you will simply go out of business or be acquired.

    Cheers

    Nicholas

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