Newsletters
Customer Relationship Management News NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home CRM Systems Customer Service Business Intelligence Sales & Marketing More Topics...
Vblock™ Systems:
Advanced converged infrastructure
increases productivity & lowers costs.

www.vce.com
DST Press Releases
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
Top 10 SaaS Companies of 2011 Revealed
Top 10 SaaS Companies of 2011 Revealed

 
March 7, 2012 11:28AM
Martinwolf Analysis Shows New Class of SaaS Companies Emerging: "Leaders Among Leaders" -- New MW IT Index report reveals that median enterprise value of top 10 SaaS companies is more than 2x that of second 10
 


San Ramon, CA, March 6, 2012 -- Martinwolf M&A Advisors today released a new report on trends in SaaS company valuations for 2011 based on the MW IT Index®, the first-ever Index measuring enterprise value of technology services companies. The report, entitled The martinwolf Report on The Top 10 SaaS Companies of 2011, reveals two key findings:

  • All Index companies in the SaaS category experienced accelerated growth in 2011 that led to a 163% premium in revenue valuation multiple based on 12 months trailing revenue over traditional software companies.

  • Median enterprise value for the top 10 SaaS companies was more than 2x that of second 10 -- 7.4x 12 months trailing revenue compared to 3.2x. This split creates a new class of SaaS companies -- "leaders among leaders."

The report further concludes that while growth for the SaaS category will continue to outpace that of traditional software for the next 12-24 months, individual companies' growth rates and enterprise values will vary as the market matures and companies segment and specialize. Specifically:

  • Companies in newer SaaS segments such as Infrastructure as Service (IaaS) and Platform as Service (PaaS) will grow faster than other SaaS companies.

  • Companies with specialized solutions for HR, real estate, restaurant services and other industries will grow faster than other SaaS companies.

  • The battle for supremacy in SaaS among the largest enterprise software players, especially IBM, Oracle and SAP -- all of whom made key acquisitions in 4Q2011 -- has put enormous pressure on the enterprise value of the de facto market leader, Salesforce.com, whose stock peaked in July 2011 at $159 per share.

Said Marty Wolf, Founder and President of martinwolf, "These market developments have implications for both buyers and sellers of SaaS companies. Buyers should expect to pay more for companies in hot segments and sellers can look forward to higher prices depending on which segments they serve. When it comes to valuations, what you do matters.

Added Wolf, "While we expect this accelerated growth in the SaaS category to continue for the next 12-24 months, recent acquisitions in the SaaS space send a clear message for sellers: Being the first company to sell in any specialized segment of SaaS matters because the second company usually sells for half the price of the first one. In other words, if you snooze, you lose."

The new SaaS report is based on the MW IT Index, a proprietary analysis by martinwolf. The MW IT Index is an index whose securities are weighted according to the market value of their outstanding shares. It measures 120 companies traded in the U.S. stock markets (NYSE, NASDAQ and OTC) in the categories of IT Services & Business Process Outsourcing (BPO); IT Supply Chain Services; and Software, including SaaS.

The MW IT Index starts on December 31, 2007 with a value of 1,000. All companies in the Index are on Scoreboard, see: http://martinwolf.com/mw-intelligence. The complete index can be accessed at MW IT Index. For a PDF copy of the new Top 10 SaaS companies report, go to martinwolf Top 10 SaaSiest.

About martinwolf (continued...)

1  |  2  |  Next Page >

 

Tell Us What You Think
Comment:

Name:

Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
What Verizon's Data Breach Report Can Teach Enterprises
It’s probably not a jaw-dropper, but cyberespionage is officially on the rise. And the use of stolen or misused credentials is still the leading way the bad guys gain access to corporate information.
 
Top Cyberthreats Exposed by Verizon Report
Beyond Heartbleed, there are cyberthreats vying to take down enterprise networks, corrupt smartphones, and wreak havoc on businesses. Verizon is exposing these threats in a new report.
 
Where Do Web Sites Stand, Post-Heartbleed?
A security firm says the vast majority of Web sites have patched themselves to protect against the Heartbleed bug, but now there are questions raised on the reliability of open-source programs.
 

Navigation
CRM Daily
Home/Top News | CRM Systems | Customer Service | Business Intelligence | Sales & Marketing | Contact Centers | Customer Data | CRM Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters | XML/RSS Feed

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.