Public SaaS Company Valuations Q1 2015

Once a year I like to take an inventory of the public Software-as-a-Service (SaaS) companies regarding their valuation, revenues, and employee count. On the public equities side, I don’t pick individual stocks (I’m a fan of Vanguard Index Funds), so I only hear about things when a stock makes a big swing.

Here’s a snapshot of public SaaS companies as of March 9, 2015:

  • salesforce.com (NYSE:CRM) – customer relationship management SaaS company.
    Market cap: $40.74 billion
    Last reported quarter’s revenues: $1,444 million
    Employees: 13,300
  • NetSuite (NYSE:N) – enterprise resource planning (accounting, inventory, etc) SaaS company.
    Market cap: $7.26 billion
    Last reported quarter’s revenues: $157.87 million
    Employees:  3,154
  • Constant Contact (NASDAQ:CTCT) – email marketing for small business SaaS company.
    Market cap: $1.30 billion
    Last reported quarter’s revenues: $88.05 million
    Employees: 1,400
  • LogMeIn (NASDAQ:LOGM) – remote desktop access SaaS company.
    Market cap: $1.28 billion
    Last reported quarter’s revenues: $59.90 million
    Employees: 804
  • LivePerson (NASDAQ:LPSN) – live chat SaaS company.
    Market cap: $614.14 million
    Last reported quarter’s revenues: $58.23 million
    Employees: 796
  • Demandware (NYSE:DWRE) – ecommerce SaaS company.
    Market cap: $2.45 billion
    Last reported quarter’s revenues: $52.50 million
    Employees:  383
  • Marketo (NASDAQ:MKTO) – marketing automation SaaS company.
    Market cap: $1.09 billion
    Last reported quarter’s revenues: $42.34 million
    Employees: 519
  • ServiceNow (NYSE:NOW) – IT asset management SaaS company.
    Market cap: $11.15 billion
    Last reported quarter’s revenues: $198.00 million
    Employees: 2,826
  • Workday (NYSE:WDAY) – HR and financial management SaaS company.
    Market cap: $15.45 billion
    Last reported quarter’s revenues: $226.27 million
    Employees: 3,500
  • Cvent (NYSE:CVT) – Events management SaaS company.
    Market cap: $1.20 billion
    Last reported quarter’s revenues: $39.33 million
    Employees: 1,450
  • ChannelAdvisor (NYSE:ECOM) – Ecommerce channel management SaaS company.
    Market cap: $243.30 million
    Last reported quarter’s revenues: $23.83 million
    Employees: 683
  • HubSpot (NYSE:HUBS) – B2B marketing platform SaaS company.
    Market cap: $1.22 billion
    Last reported quarter’s revenues: $34.16 million
    Employees: 719
  • Zendesk (NYSE:ZEN) – Help desk management SaaS company.
    Market cap: $1.76 billion
    Last reported quarter’s revenues: $38.54 million
    Employees: 806

Clearly, SaaS is hot with Salesforce.com far and away the most dominant vendor. All companies have had an increase in valuation compared to last year, except for ChannelAdvisor.

What else? What are some other thoughts on the valuations for publicly traded SaaS companies?

One thought on “Public SaaS Company Valuations Q1 2015

  1. Great post David! It would be helpful to add comparative valuation metrics for benchmarking purposes

    Revenue Multiple = Enterprise Value / Revenue

    And possibly comparative productivity metrics such as Revenue / employees

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