Category: s 1 analysis

Posts

map[]
26 August / s-1 analysis
Recently, we've seen a series of product-driven companies building huge customer bases with tremendous account expansion and terrific sales efficiency. DataDog is no exception. DataDog provides a very popular IT monitoring solution that has grown from its founding in 2010 to a huge business. During that time the product has grown from infrastructure monitoring to application performance management, logging and user experience products. The company published its S-1 Friday. DataDog counts more than 8800 customers, 590 of which spend more than $100k, and 40 of which spend more than a $1M.
map[]
29 April / s-1 analysis
Slack has transformed the way we work. By replacing email with beautiful and simple internal chat, Slack has productized productivity. Founded as a gaming company called Tiny Speck in 2009, the company's initial product, Glitch, didn't catch on as expected. So the business pivoted to commercialize an internal tool - a Searchable Log of All Conversation and Knowledge, Slack. Since those early days, the company has grown to employ 1500 employees according to their S-1.
map[]
24 March / s 1 analysis
In the past few years, Zoom has become a verb: the act of video conferencing someone. Eight years ago, Eric Yuan, former VP Engineering at WebEx left to create a business with a better video conferencing product. He and his team authored a new codec, which is far more resilient than others. The innovation results in higher quality calls. Focused on capital efficiency from the earliest days of the business, Eric has built a monster software business, with few comparisons in both absolute scale and efficiency.
map[]
18 March / s 1 analysis
PagerDuty was founded in 2009 by 3 former Amazon engineers who were often on-call. To engineers, being on call means carrying a pager to respond to crises when software breaks or services go down. In the 10 years since that day, PagerDuty has built an exceptional business. Their product has evolved from on-call management, which includes routing calls, triaging alerts, and creating workflows to handle crises in real time; to an incident management platform that manages the standard operating procedures for responding to crises; to real-time operations dashboards that provide visibility and health scores for infrastructure.
map[]
10 September / s 1 analysis
Last week, Elastic filed their S-1 to go public. Elastic is a Dutch company founded in 2012. Just five years later, the company generated $159.9M in revenue. Elastic commercializes open source software called the Elastic Stack, a set of different products that enable users to search and store data in many different sources and formats. This software is used for application search, website search, enterprise search, application performance monitoring, and analytics for business and security data.
map[]
24 February / s 1 analysis
Founded in 2007, Dropbox epitomizes the freemium go-to-market. Dropbox has grown from 0 to 500 million users over that time period. 2% of those users convert to paid and pay an average of $9.33 per month. 90% of revenue originates through self serve channels - an astounding figure for company that generated more than $1B in revenue last year. Dropbox's revenue grew from $604M to $1.1B from 2015 to 2017, a compound annual growth rate of 35%.
map[]
01 October / s 1 analysis
Shopify is an exceptional business. There are not many software companies who can nearly quadruple their enterprise value in two years. But Shopify has grown from $2.7B in enterprise value to more than $10B. What are the metrics behind this behemoth? First, let's describe the company a bit. Shopify provides e-commerce infrastructure to merchants. They generate revenue in two ways: subscriptions and merchant services. Merchants pay subscription to rent the software.
map[]
03 April / s 1 analysis
Cloudera is the second of the Hadoop players to go public. Last week, the company filed their S-1 and revealed a massive business. Cloudera generated $261M in revenue, counts 500 clients and grows those accounts by 43% annually. 18% of their customers run Cloudera software in the cloud, a surprisingly large number. Hortonworks is Cloudera's chief competitor. In the following charts, we'll compare the two businesses. These analyses compare the two companies based on the year they went public, marked 0 in the charts.
map[]
21 February / s 1 analysis
Founded in 2006, Mulesoft is an 850 person company based in San Francisco that builds data integration tools. The company started originally as an open-source product and then focused on its paid offering. Today, the business generates nearly $200 million annually in revenue, and is growing at 70%. The business filed to go public last week, and the documents reveal a very impressive business operating at scale. The chart above shows the subscription revenue is roughly at $150 million and professional services revenue is about $35 million this year.
map[]
02 January / s 1 analysis
Founded in 2008, AppDynamics is a leader in the application performance management space. AppDynamics technology helps engineers determine how software applications behave as users interact with them. Based in San Francisco, AppDynamics employs about 1200 people and has raised approximately $315M to date. The company filed their S-1 recently to take the company public. Let's look at some of the key metrics and then compare AppDynamics to NewRelic, a close competitor which went public in late 2014.
map[]
08 December / history / s 1 analysis
The Ultimate Software Company is a $5.5B market cap provider of SaaS Human Capital Management software. Founded in 1996, the company initially sold licensed software and migrated to multi-tenant SaaS in 2002 with a product called UltiPro. Today, more than 82% of revenues are subscription dollars. The company serves the mid-market and enterprise customers with a broad software suite that includes Payroll, Human Resources Management Software (HRIS), Benefits Management, Time Clock and a Self Service Portal for employees.
map[]
10 November / s 1 analysis
Founded in 2002, the Australian software maker Atlassian is an exceptional company in many regards. But foremost, Atlassian is one of the best examples of flywheel SaaS companies yet. Atlassian counts 1600 employees and sells five products JIRA (bug tracking software), Confluence (project management), HipChat (internal chat/collaboration), BitBucket (code repository) and JIRA Service Desk (help desk software. Yesterday, Atlassian filed their F-1, a document preceding their IPO, and revealed how efficient a software company they have built.
map[]
30 July / s 1 analysis / history
Founded in 1998, Netsuite is worth about $7.7B, making it the sixth largest SaaS compay behind Salesforce, LinkedIn, Workday, ServiceNow and Splunk. Netsuite began developing ERP (enterprise resource planning) tools to help companies manage their finances, expenses and supply chain. Over time, Netsuite has added a few more product lines including ECommerce platform, CRM, business intelligence and a professional services management product. In the last ten years, Netsuite has grown revenue from $18M to $556M.
map[]
09 June / s 1 analysis / history
Worth $11.5B, ServiceNow is the third public SaaS company, after Salesforce and LinkedIn. Based in San Diego, ServiceNow employs roughly 3000 people, and sells a system of record for IT operations teams to manage IT assets, facilities, and human resources. ServiceNow's software allows clients to develop custom applications for their own needs, often with the help of the company's professional services team. The business was founded in 2004, but hit its stride 2009 and went public in 2012.
map[]
27 January / s 1 analysis / history
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Salesforce went public more than 10 years ago. This harbinger of subscription, internet delivered software created one of the most exciting waves in software and the single most valuable SaaS company today, worth $37B as of this writing.
map[]
15 January / s 1 analysis
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders.There's a SaaS company on the other side of the world founded nine years ago that is worth $2B, generates $100M in annual revenue and growing 80% year over year. Based in New Zealand, Xero has built a widely adopted small-to-medium business (SMB) accounting solution that counts 371,000 paying customers, a figure that grew 76% in the last 12 months.
map[]
08 January / s 1 analysis
Since LinkedIn's IPO in 2012, the company has grown its market cap by 6x and as of this writing is worth about $27.5B. Second to Salesforce, LinkedIn is the second largest SaaS company in the world. Unlike most SaaS companies which are B2B, LinkedIn is a B2C2B company. LinkedIn attracts hundreds of millions of consumers to post resumes online and sells this data and access to its audience to advertisers and recruiters and salespeople.
map[]
11 December / data analysis / exits / saas / s 1 analysis
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Box is a 1000+ person company providing collaboration and document sharing software. We had previously analyzed the business when the company filed their first S-1. Yesterday, the company filed an updated version of their S-1.
map[]
17 November / data analysis / exits / saas / s 1 analysis
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. New Relic is San Francisco based, 534 person company providing tools for engineers to understand how well their code is performing. The company operates in the Application Performance Management category, which New Relic calls Software Analytics.
map[]
13 October / s 1 analysis
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Today, we'll explore one of the enterprise behemoths, both in market cap and average revenue per customer: WorkDay. WorkDay envisions being the place of record for all Human Resources data for companies with more than 5,000 employees.
map[]
30 September / s 1 analysis
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Founded in 2007, MobileIron is a leader in the Mobile Device Management sector. MDM provides enterprises software to manage the mobile phones and tablets of their employees. MobileIron provides three different products: a server product called Core to define and deploy security policies, a client product named Client that enforces these policies on each device and a gateway called Sentry that secures traffic from the device to the enterprise's servers.
map[]
22 September / s 1 analysis
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. All of the businesses we've looked at in the past have been purely SaaS businesses. Today, we'll examine Tableau, the market leader for data visualization software. Tableau sells software the old-fashioned way, with perpetual licenses not subscriptions.
map[]
15 September / s 1 analysis
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. In the two most recent analyses, we've explored the S-1s of Hubspot and Zendesk, two of the public SaaS companies with the smallest Average Revenue per Customer. Today, we'll look at Veeva, masters of the massive enterprise sale, and one of the most remarkable SaaS businesses.
map[]
03 September / data analysis / exits / saas / s 1 analysis
This post is part of a continuing series evaluating the S-1s of publicly traded SaaS companies in order to better understand the core business and build a library of benchmarks that might be useful to founders. Zendesk is a 700 person company that builds customer support software. Zendesk went public earlier this year. It's a remarkable business primarily because the founders and the team have built an incredibly efficient customer acquisition funnel.
map[]
27 August / data analysis / exits / saas / s 1 analysis
One of the best ways I've found to understand SaaS companies is to pore through their public filings. A few months ago, I analyzed Box's S-1. In this post, we'll look at HubSpot's IPO filing and compare their journey to a public company with a basket of about 40 other publicly traded companies, in the hopes that this data will help other founders chart their path to IPO. In the next seven charts, we'll explore how HubSpot built their business.
map[]
Yesterday, Box filed for its IPO and released its S-1. I enjoy going through S-1s because quite a bit about a private company is revealed and though only a subset of information is released, the S-1 discloses some very important details about the business operations. Over the past several months, I've analyzed the basket of the roughly 40 public SaaS companies many different ways. With the Box S-1 in hand, I can now benchmark Box's business against other publics, and in particular, SaaS companies nine years after founding.