第1季度軟件洞察

1、TakeawaysTHE VIEWQ1 Software perspectives from GP BullhoundCore HR software implementation is accelerating in SMEsA lot of SMEs currently do not have any HR software solutions in placeCompanies are looking to digitise traditional HR and recruiting processesSME DIGITISATIONVIA HR SAASBusinesses acros

2、s all industries have adopted beacon technologyUse cases prevalent in retail, education, transportation, and moreBEACON TECHNOLOGY GROWINGMarket for beacon technology likely to grow significantlyOrganisations are looking for ways to manage their complex tech stacksEnterprises now recognise the impor

3、tance of effective SaaS managementSoftware is the modern-day conveyor belt for enterprisesSAAS BLOAT GETSBULLDOZEDIncreased competition means focus on finding new avenues for differentiationA new crop of companies aiming to provide full-stack onboarding experienceONBOARDING DIFFERENTIATIONHigh-quali

4、ty onboarding helps companies achieve higher customer retentionMicro-SaaS businesses have narrow focuses, lean teams, and low costsDevelopers offering single specialised platforms or small set of specialised toolsMICRO-SAASCustomers reduce cost and increase customisation, developers keep costs lowWa

5、ve of large transactions in the MarTech spaceCustomer engagement/experience companies to continue to be acquisitiveCustomer Data Platforms (CDPs) have become critical part of MarTech stackMARTECH CONSOLIDATIONTakeaways2GP Bullhounds recent Software activityA LEADING TECHNOLOGY ADVISORY AND INVESTMEN

6、T FIRM, PROVIDING TRANSACTION ADVICE AND CAPITAL.Investment BankingInvestment ManagementINVESTMENT BYINVESTMENT BYINVESTMENT BYSOLD TOSOLD TOINVESTMENT INSOLD TOSOLD TOSOLD TOSOLD TOINVESTMENT BYINVESTMENT BYINVESTMENT BYFund IVINVESTMENT BYFund IVINVESTMENT BYFund IIIINVESTMENT BYINVESTMENT BYINVES

7、TMENT BYINVESTMENT BYINVESTMENT BYINVESTMENT BYFund VFund IVFund IVFund IVFund IVFund III34GP BULLHOUNDS SECTOR TAKEAWAYSQ1 Software perspectives from GP BullhoundSources: Buildfire (as of 24 February 2021), Beaconstack (as of 28 December 2020), P (as of 25 November 2020); Zylo (as of 24 February 20

8、21), TechCrunch (as of 16 February 2021), onboard.io (as of 24 February 2021), Inside Indiana Business (as of 29 October 2019), and Cleanshelf (as of 18 September 2020)Rapidly growing beacon technology market despite consumer-first policiesSaaS bloat gets bulldozedBusinesses across all industries ha

9、ve adopted beacon technology, leveraging it for advanced mobile app functionality.Beacon technologys use cases have become incredibly prevalent in the retail, education, transportation, healthcare,and hospitality sectors. Use cases primarily involve leveraging user location data to create a highly p

10、ersonalised customer-centric approach.The market for beacon technology is set to grow significantly as companies are looking to continuously improve their customer insights and experiences.As SaaS, a market that generated $104bn of revenue in 2020 and is projected to grow more than 15% in 2021, acco

11、rding to Garner, continues to inherit the world, organisations have begun to look for ways to aggregate, control and manage their SaaS subscription and internal software ecosystems.Approaches to SaaS management have varied greatly, from integration as a service platform connecting all software appli

12、cations in an enterprise to other solutions focusing on solving a specific task and leveraging various platforms as needed. Regardless of the approach, all enterprises now recognise the importance of SaaS effective management.Enterprises are now determining how to optimise and properly integrate the

13、ir software and to realise synergies and create a consolidated, simplified, and seamless tech stack.DEAL DATE: MAR-21TTV: $20MEV/ REV: N/ADEAL DATE: APR-21 TTV: $68MEV/REV: 10.6XTakeawaysSelect transactionsin Q1 2021SOLD TOINVESTMENT BYFund VINVESTMENT BYDEAL DATE: MAR-21TTV: $275M5GP BULLHOUNDS SEC

14、TOR TAKEAWAYSQ1 Software perspectives from GP BullhoundSources: UserGuiding (as of 6 April 2021) and Recur (as of 27 April 2020)Strong acceleration of digitisation in SMEs, with HR software at the core in a world of remote workingOnboarding becomes a point of differentiation for SaaS companiesCore H

15、R software implementation accelerating in SMEs driven by the need to increase efficiencies, competition for good talent and the rise of remote workforces.A lot of SMBs dont have HR software solutions in place - implementing core HR software platforms allows them to digitise daily HR processes, drive

16、 efficiencies and free up HR staff to focus on strategic and value-add tasks.Historically SMBs focused on optimising sales & marketing through software, but companies have realised that HR and talent is at the core and now place particular emphasis on optimising this function.COVID has only accelera

17、ted the focus on HR software above and beyond core HR processes, as productivity and employee engagement have become more important than ever.The SaaS market has become increasingly competitive over the past few years as software takes control of virtually everyworkflow in modern enterprises. This h

18、as led to an increased focus on finding new avenues for differentiation.Currently, many companies use discrete software platforms for onboarding activities such as product tours, customer messaging, and helpdesk services.Though these solutions are helpful, they often are not sufficient. This has led

19、 to a new crop of companies aiming to provide a full-stack onboarding experience that leads new customers from novice to pro.High-quality onboarding helps companies understand their customers better, which can lead to improved customer satisfaction and ultimately higher customer retention.DEAL DATE:

20、 MAY-18TTV: $427MDEAL DATE: FEB-14 TTV: N/ATakeawaysSelectinvestment managementtransactionsDEAL DATE: MAR-21TTV: $275MINVESTMENT BYFund VFund IVFund IIIINVESTMENT BYINVESTMENT BY6TakeawaysDEAL DATE: DEC-19TTV: $45M EV/REV: N/ADEAL DATE: JUL-19TTV: 157M EV/REV: N/ADEAL DATE: JAN-20TTV: $30MEV/REV: N/

21、ASelectinvestment bankingtransactionsSources: Trends.vc and Tyler Tringas (as of 22 February 2021), Koombea (as of 15 December 2020), and Upland, Sitecore, mparticle, Techcrunch, and Techtarget (as of 29 March 2021)Micro-SaaS making wavesWe are seeing micro-SaaS businesses, defined as SaaS businesse

22、s with narrow focuses, lean teams and low costs, starting to receive attention from developers and end users.Micro-SaaS developers are offering a single specialised platform or small set of specialised tools with an API for integration with other external platforms/services.While this may increase o

23、verall complexity of ones tech stack, customers are able to build out tech stacks that are highly specialised, cost effective and decentralised while developers are able to keep costs low and avoid distraction.Mass consolidation across the MarTech landscapeQ4 2020 and Q1 2021 saw a wave of large tra

24、nsactions in the MarTech space as companies and consumers rapidlysearched for more seamless ways to communicate, co-ordinate and collaborate across a changing digital landscape.With people working remotely, there has been an increased demand and strain put on digital channels that people use to comm

25、unicate with organisations when they have questions or problems.Software companies in customer engagement (e.g., Sinch raising $690m) and digital experience management (e.g., Sitecore raising $1.2bn) have benefited from these tailwinds and may continue to be highly acquisitive through 2021.Customer

26、Data Platforms (CDPs) have become a critical part of the MarTech stack by taking in data from customer service, CRM and e-commerce applications, and feeding into marketing automation tools and other systems that need real-time views of customer activity.Q1 2021 saw several acquisitions of CDPs by co

27、ntact centre and digital experience management vendors, seeking to gain a 360-degree view of their customers and deliver personalised experiences across all channels.GP BULLHOUNDS SECTOR TAKEAWAYSQ1 Software perspectives from GP BullhoundSOLD TOINVESTMENT BYINVESTMENT BY7Selected M&A transactionsDat

28、eBuyerTargetTarget descriptionValue ($m)EV/LTM RevProvider of cloud-basedMar-31unified communications5607.0 xservices to small- andmid-sized businessesMar-23Provides a customer experience and intelligence platform1,000-Developer of a careMar-23coordination platform500-designed to connecthealthcare p

29、rovidersMar-11Developer of cloud- based POS and retail management software35010.3xIntegrates data andMar-10applications in real time2,8389.0 xacross modern big dataand cloud environmentsMar-04Specialises in employee scheduling to provide optimal forecasting and cost management221-Feb-18Provides a da

30、ta platform for time-series logging and event analysis392-Feb-10Developer of a showing management and platform for real estate50020.0 xDeveloper of a cloud-Feb-09based social1,7258.2xcommunication andentertainment platformSelected private financingsDateLead investorIssuerIssuer descriptionValue ($m)

31、Mar-30Provides an AI platform for predicting companies in the market looking to purchase solutions125Mar-29Developer of software for the trades industry focusing on SMB500Mar-17Provider of a software development programme that allows processes to be distributed across a network140Mar-15Provider of c

32、loud-based no-code spreadsheets and relational databases for productivity270Mar-03Developer of revenue outcome prediction software150Feb-16Specialises in cloud data integration and warehousing for data management and translation100Jan-17Provides an end-to-end HR platform focused on SMB clients125Jan

33、-27Provider of subscription-based scheduling software that eliminates back-and-forth emails350Jan-22Provides enterprise-grade AI for platforms and applications to accelerate the digital transformation700NOTABLE SOFTWARE M&A DEALS & PRIVATE FINANCINGSThe usual suspects continued making deals in Q1 20

34、21Sources: Capital IQ and Pitchbook (as of 31 March 2021), and GP Bullhound intelligenceTransaction trends8GLOBAL SOFTWARE TRANSACTION TRENDSGlobal M&A and private placements continue uptrendContinued momentum in global M&A/buyoutsSharp uptick in global private placement volumeEuropean M&A/buyouts c

35、ontinue strong growthUS & Canada claw back share from Asia100%90%80%70%60%50%40%30%20%10%0%2015 Q32015 Q42016 Q12016 Q22016 Q32016 Q42017 Q12017 Q22017 Q32017 Q42018 Q12018 Q22018 Q32018 Q42019 Q12019 Q22019 Q32019 Q42020 Q12020 Q22020 Q32020 Q42021 Q1AsiaOther4,0003,5003,0002,5002,0001,5001,0005000

36、$50bn$45bn$40bn$35bn$30bn$25bn$20bn$15bn$10bn$5bn$0m2015 Q32015 Q42016 Q12016 Q22016 Q32016 Q42017 Q12017 Q22017 Q32017 Q42018 Q12018 Q22018 Q32018 Q42019 Q12019 Q22019 Q32019 Q42020 Q12020 Q22020 Q32020 Q42021 Q1Capital invested ($bn)Volume100%90%80%70%60%50%40%30%20%10%0%2015 Q32015 Q42016 Q12016

37、Q22016 Q32016 Q42017 Q12017 Q22017 Q32017 Q42018 Q12018 Q22018 Q32018 Q42019 Q12019 Q22019 Q32019 Q42020 Q12020 Q22020 Q32020 Q42021 Q1U.S. & CanadaEuropeAsiaOtherU.S. & CanadaEuropeSources: Pitchbook (as of 31 March 2021); Note: Data includes all SaaS M&A and private placement deals as defined by P

38、itchbook regardless of geography or transaction size8007006005004003002001000$140bn$120bn$100bn$80bn$60bn$40bn$20bn$0m2015 Q32015 Q42016 Q12016 Q22016 Q32016 Q42017 Q12017 Q22017 Q32017 Q42018 Q12018 Q22018 Q32018 Q42019 Q12019 Q22019 Q32019 Q42020 Q12020 Q22020 Q32020 Q42021 Q1M&ABuyoutM&A dealsBuy

39、out dealsTransaction trends9Sources: Company SEC filings from Edgar and Capital IQ (as of 31 March 2021); Note: 1) As of 31 March 2021; 2) Figures representative as of nine months ending 30 September 2020; and 3) Average revenue per paying userTransaction trendsCompanyOverviewProvides a customer exp

40、erience management platformfor enterprisesDeveloper of a robotic process automation platform to help organisations automate business processesDeveloper of an application for on-demand deliverySOFTWARE IPO LANDSCAPENew GP Bullhound SaaS index constituentsListed Q1 2021Listings to look for in Q2 2021i

41、mprove their online visibility and drive traffic to websites and social media accountsFounded: 2008Listing date: 29 March 2021Offering amount: $140m raisedEnterprise value1: $1.6bnDescription (NYSE: SEMR): Provider of an online visibility platform that enables subscribers toOffering price/share: $14

42、.00LTM 3/31/21 net revenue: $125mSelected metrics:50%+ Revenue CAGR from 2016 to 2020114% dollar-based retention67k+ current customers$2,123 2020 ARR per customerDescription (NYSE: RBLX): Entertainment platform and SDK where users can interact and develop immersive 3D experiencesFounded: 2004Listing

43、 date: 10 March 2021Offering amount: Direct listingEnterprise value1: $35.1bnOffering price/share: $45.00LTM 3/31/21 net revenue: $924mSelected metrics:31.1m daily active users222.1m hours engaged2$39.93 average bookings per DAU2170% bookings growth for the nine months ended 30 September 2020Descrip

44、tion (NYSE: OLO): Digital ordering software for restaurant brands and delivery programmes via third-party marketplacesFounded: 2005Listing date: 17 March 2021Offering amount: $450m raisedEnterprise value1: $3.9bnOffering price/share: $25.00LTM 3/31/21 net revenue: $98mSelected metrics:1.8m orders pe

45、r day94% 2020 YoY revenue growth120% net revenue retention2020 GMV of $14.6bn paid through platformDescription (NASDAQ: BMBL): Provider of a consumer subscription software platform for dating and meeting new peopleFounded: 2014Listing date: 11 February 2021Offering amount: $2.1bn raisedEnterprise va

46、lue1: $7.9bnOffering price/share: $43.00LTM 3/31/21 net revenue: $582mSelected metrics:42m monthly active users22.4m paying users236.1bn messages sent2$26.84 Bumble app ARPPU3Description (NASDAQ: XM): Provider of adata for employee customer experienceFounded: 2002Listing date: 28 January 2021Offerin

47、g amount: $1.5bn raisedEnterprise value1: $16.9bnsoftware platform to help organisations collect Offering price/share: $30.00LTM 3/31/21 net revenue: $764mSelected metrics:34% YoY subscription rev. growth2120% net revenue retention1,200+ customers with $100k+ in ARR101x6x11x16x21x3/31/20163/31/20173

48、/31/20213/31/2018GPB SaaS Index - EV / LTM Revenues3/31/20193/31/2020GPB SaaS Index - EV/ NTM RevenuesSources: Wall Street Journal and Capital IQ (as of 31 March 2021)Mean: 10.7xMean: 8.8xMarch 2020: After a brief initial sell-off, SaaS stocks enjoyed significant appreciation thanks to the forced di

49、gitisation of the world caused by COVID-19December 2018: Trade war with China leads to sell-off of SaaS stocksFebruary/March 2021: Though SaaS valuations are still significantly above historical levels, a new US presidential administration, inflation concerns, and rising interest rates contributed t

50、o a modest pull back of the SaaS IndexPublic company analysesREVENUE MULTIPLE TRENDS LAST 5 YEARSGP Bullhound SaaS index valuationsCurrent SaaS valuations remain strong against the 5-year meanAs of 31 March, the SaaS Index is trading at 16.3x trailing 12-month revenues, which is 53% greater than the

51、 5-year average As of 31 March, the SaaS Index is trading at 13.0 x next 12-month revenues, which is 47% greater than the 5-year average11Sources: Capital IQ as of 31 March 202192.3%105.8%102.8%85%90%95%100%105%110%31-Dec-2031-Jan-2128-Feb-2131-Mar-21GPB SaaS Index - Index ValueS&P 500NASDAQ Composi

52、te104.6%118.6%110%120%130%GPB SaaS Index - Index ValueS&P 500NASDAQ Composite140%153.7%100%120%100%90%Sep-20Oct-20Nov-20Dec-20Jan-21Feb-21Mar-2180%Mar-20Jun-20Sep-20Dec-20Mar-21197.4%172.0%118.1%160%180%200%220%GPB SaaS Index - Index ValueS&P 500NASDAQ CompositeL6ML12M240%101.8%97.5%80%85%90%87.8%95

53、%100%GP BULLHOUND SAAS INDEX PERFORMANCERecent sector sell-offs have impacted short-term performanceL1ML3M110%115%105%1-Mar16-Mar21-Mar26-Mar31-Mar6-Mar11-MarGPB SaaS Index - Index ValueS&P 500NASDAQ CompositePublic company analyses12Sources: Capital IQ, company SEC filings, and GP Bullhound estimat

54、es (as of 31 March 2021); Note: 1) CY21E/CY20A; 2) (S&M LTM Dec. 2019/(LTM Dec. 2020 rev. LTM Sep. 2019 rev.)*GM%)/12; 3) LTM Dec. 2020 operating cash flow/LTM Dec. 2020 revenue; and 4) as stated in company filings & earnings releasesFree cash flow margin(3)Net dollar retention(4)40%38% 38% 38% 37%

55、36% 34%32% 30% 30% 29% 29% 29%27% 25% 23%21% 20% 20%20%10%0%30%40%50%60%70%PUBLIC SAAS METRIC BENCHMARKINGKey metrics for SaaS investorsRevenue YoY growth(1)90% 85%80%30252015107.47.9508.89.3 10.511.713.617.2 17.3 18.219.7 20.522.2 22.2 22.5 22.8 22.8 23.8 24.230.8Payback period(2)In months, lower i

56、s better3523%-27%50%40%30%20%10%45% 40%38%31%23% 20%18% 15% 15% 15%10%8%3%2%180%160%140%120%165%142%137%130%125%124%120%120%119%115%102%97%0%100%80%-10%-20%-4%-7%-8%60%-30%-40%-40%20%-50%-41%0%Public company analyses13Sources: Company SEC filings and GP Bullhound estimatesPUBLIC SAAS METRIC BENCHMAR

57、KINGGP Bullhound SaaS index net dollar retentionNet dollar retentionExceptionalBest-in-classVery goodGood137%130%125%124%120%120%119%115%102%97%0%20%40%60%80%100%120%140%180%165%160%142%SnowflakeUnityTwilioDataDogSlackVeevaOktaDocusignCloudflareAsanaHubspotServiceNowMedian: 122%Public company analys

58、es14Sources: Capital IQ and company SEC filings (as of 31 March 2021)UnityTwilioDataDogSlackVeevaOktaDocusignAsanaHubspotServiceNow10 x15x20 x25x30 x100%120%140%200%220%240%EV/NTM revenue160%180%GP Bullhound SaaS ScoreTrend line (expected valuation)Public company analysesPUBLIC SAAS METRIC BENCHMARK

59、INGRetention is the most important determinant of valuationWe examined the impact of retention on valuation by creating a GPB SaaS Score, defined as revenue growth + FCF margin + net dollar retention. We are observing that these companies with higher retentions are trading at more attractive valuati

60、ons in public markets.60 xSnowflake55x50 x 45x 40 xCloudflare35xSHOPDOCUZSSINCHDDOGCOUPNOWOKTA PLTRESTCVEEVUPLDFROGTWLORNGDTCSODCRMPLANEVBGWDAYPDMDBFIVNMCFEMIMENETQLYSTWOUWIXHUBSUCLDRBOXLPSNDBXRPBLNEWRSPTWKQTWOZEN TENB PSMDLA PCTYJCOMSUMOECOMMSP PAYCRXTAYXTLNDZUO SPSCAPPNBCOVPINGSCWXSPLK(10.0%)0.0%1