Out of the Cloud of Cloud Computing:
KPMG’s perspective on Financial and IP Aspects
Our case study begins..
License
Support
0
5
10
15
20
25
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
U.S.
Parent
Israeli
Sub
Our case study begins..
U.S.
Parent
Israeli
Sub
0
5
10
15
20
25
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
Amount of capital paid in prior to an IPO for public SaaS companies
Wachovia Securities, May 2008 “the state of the SaaS market”
Mean
43.5
Median
39.5
$M
Blackboard
100.7
Concur Technologies
30.2
Constant Contact
37.3
DealerTrack
48.0
DemandTrack
42.0
HireRight
29.2
Kenexa
54.5
LivePerson
41.6
NetSuite
84.9
Omniture
66.9
RightNow Technologies
32.2
Salary.com
5.7
Salesforce.com
64.5
Solera
5.7
SuccessFactors
54.5
Taleo
36.9
Ultimate Software
25.1
Vocus
26.4
2-3X the amount of capital required for a
traditional model software company to reach
profitability/IPO.
Amount of capital paid in prior to an IPO for public SaaS companies
Wachovia Securities, May 2008 “the state of the SaaS market”
Mean
43.5
Median
39.5
$M
Blackboard
100.7
Concur Technologies
30.2
Constant Contact
37.3
DealerTrack
48.0
DemandTrack
42.0
HireRight
29.2
Kenexa
54.5
LivePerson
41.6
NetSuite
84.9
Omniture
66.9
RightNow Technologies
32.2
Salary.com
5.7
Salesforce.com
64.5
Solera
5.7
SuccessFactors
54.5
Taleo
36.9
Ultimate Software
25.1
Vocus
26.4
2-3X the amount of capital required for a
traditional model software company to reach
profitability/IPO.
These public SaaS companies, on average,
raised about $25M at strong valuation mark ups,
and invested this amount primarily on sales and
marketing in the year prior to going public.
Amount of capital paid in prior to an IPO for public SaaS companies
Wachovia Securities, “the state of the SaaS market”
Mean
43.5
Median
39.5
$M
Blackboard
100.7
Concur Technologies
30.2
Constant Contact
37.3
DealerTrack
48.0
DemandTrack
42.0
HireRight
29.2
Kenexa
54.5
LivePerson
41.6
NetSuite
84.9
Omniture
66.9
RightNow Technologies
32.2
Salary.com
5.7
Salesforce.com
64.5
Solera
5.7
SuccessFactors
54.5
Taleo
36.9
Ultimate Software
25.1
Vocus
26.4
2-3X the amount of capital required for a
traditional model software company to reach
profitability/IPO.
These public SaaS companies, on average,
raised about $25M at strong valuation mark ups,
and invested this amount primarily on sales and
marketing in the year prior to going public.
Salesforce.com raised $47M in November 1999
at a 224% step up in valuation and IPO’d just
five months later in March 2000.
Amount of capital paid in prior to an IPO for public SaaS companies
Wachovia Securities, “the state of the SaaS market”