SaaS Public Company Valuations Q1 2016

Eleven months ago I wrote about the SaaS Public Company Valuations Q1 2015 and times have changed. Before, SaaS companies were trading at higher multiples and now, most, but not all have come down. Let’s look at the public SaaS company valuations and compare them to last year.

  • salesforce.com (NYSE:CRM) – customer relationship management SaaS company.
    • March 9, 2015
      Market cap: $40.74 billion
      Last reported quarter’s revenues: $1,444 million
      Employees: 13,300
    • February 4, 2016
      Market cap: $43.39 billion
      Last reported quarter’s revenues: $1,711 million
      Employees: 16,000
  • NetSuite (NYSE:N) – enterprise resource planning (accounting, inventory, etc) SaaS company.
    • March 9, 2015
      Market cap: $7.26 billion
      Last reported quarter’s revenues: $157.87 million
      Employees:  3,154
    • February 4, 2016
      Market cap: $5.33 billion
      Last reported quarter’s revenues: $206.23 million
      Employees: 4,506
  • LogMeIn (NASDAQ:LOGM) – remote desktop access SaaS company.
    • March 9, 2015
      Market cap: $1.28 billion
      Last reported quarter’s revenues: $59.90 million
      Employees: 804
    • February 4, 2016
      Market cap: $1.27 billion
      Last reported quarter’s revenues: $69.57 million
      Employees: 964
  • LivePerson (NASDAQ:LPSN) – live chat SaaS company.
    • March 9, 2015
      Market cap: $614.14 million
      Last reported quarter’s revenues: $58.23 million
      Employees: 796
    • February 4, 2016
      Market cap: $315.77 million
      Last reported quarter’s revenues: $60.76 million
      Employees: 1,058
  • Demandware (NYSE:DWRE) – ecommerce SaaS company.
    • March 9, 2015
      Market cap: $2.45 billion
      Last reported quarter’s revenues: $52.50 million
      Employees:  383
    • February 4, 2016
      Market cap: $1.63 billion
      Last reported quarter’s revenues: $57.58 million
      Employees: 590
  • Marketo (NASDAQ:MKTO) – marketing automation SaaS company.
    • March 9, 2015
      Market cap: $1.09 billion
      Last reported quarter’s revenues: $42.34 million
      Employees: 519
    • February 4, 2016
      Market cap: $765.56 million
      Last reported quarter’s revenues: $54.92 million
      Employees: 715
  • ServiceNow (NYSE:NOW) – IT asset management SaaS company.
    • March 9, 2015
      Market cap: $11.15 billion
      Last reported quarter’s revenues: $198.00 million
      Employees: 2,826
    • February 4, 2016
      Market cap: $9.43 billion
      Last reported quarter’s revenues: $285.65 million
      Employees: 3,402
  • Workday (NYSE:WDAY) – HR and financial management SaaS company.
    • March 9, 2015
      Market cap: $15.45 billion
      Last reported quarter’s revenues: $226.27 million
      Employees: 3,500
    • February 4, 2016
      Market cap: $12.11 billion
      Last reported quarter’s revenues: $305.27 million
      Employees: 4,900
  • Cvent (NYSE:CVT) – Events management SaaS company.
    • March 9, 2015
      Market cap: $1.20 billion
      Last reported quarter’s revenues: $39.33 million
      Employees: 1,450
    • February 4, 2016
      Market cap: $1.04 billion
      Last reported quarter’s revenues: $48.38 million
      Employees: 1,740
  • HubSpot (NYSE:HUBS) – B2B marketing platform SaaS company.
    • March 9, 2015
      Market cap: $1.22 billion
      Last reported quarter’s revenues: $34.16 million
      Employees: 719
    • February 4, 2016
      Market cap: $1.35 billion
      Last reported quarter’s revenues: $47.71 million
      Employees: 1,091
  • Zendesk (NYSE:ZEN) – Help desk management SaaS company.
    • March 9, 2015
      Market cap: $1.76 billion
      Last reported quarter’s revenues: $38.54 million
      Employees: 806
    • February 4, 2016
      Market cap: $1.90 billion
      Last reported quarter’s revenues: $55.66 million
      Employees: 806

Fast-growing SaaS companies still trade at solid multiples but for ones where the growth has slowed, the multiples have lowered even more.

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

One thought on “SaaS Public Company Valuations Q1 2016

  1. Good example of the well known challenge of SaaS – several of these had significant YoY headcount growth without concomitant YoY revenue growth. In other words – you have to invest significantly ahead of when the revenue comes in.

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