This document discusses the professional services automation (PSA) software market. It notes that the PSA market is a $3 trillion global market, with the global PSA software market estimated at $7.3 billion in 2016 and projected to reach $12.9 billion by 2022. The PSA software market has attractive characteristics as a recurring revenue SaaS model with room for multiple leaders given the fragmented landscape. Several factors could drive growth, including the transition to cloud, services sector growth, and global resource pooling.

1. By Patrick Gildea
9/6/17
1
DRAFT FOR DISCUSSION PURPOSES ONLY

2. § Professional Services a $3 Trillion global market (1)
§ $7.3 Billion global PSA Software market (est US ~$300M) (2)
§ >10% CAGR, reaching $12.9 Billion by 2022 (2)
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Large Growing
Market
Attractive
SaaS Model
Fragmented
Landscape
Several
Growth Drivers
§ Recurring revenue model, typically high retention / low churn
§ Low cost to maintain annuity; scale delivers strong EBITDA
§ Transitioning from on-premise to cloud a key market accelerant
§ No dominant player in PSA, likely room for 2-3 scaled leaders in space
§ Several adjacent verticals and likely add-on cross-sell/upsell opportunities
§ M&A roll-up opportunities likely abundant
§ Market shift from on-premise to cloud; services sector growth and global resource pooling
§ Expansion via International, enterprise, vertical reach and product (i.e. marketplace concept)
§ In-organic opportunities likely exist through vertical or regional expansion
Notes:
1) Forbes article 6/15/2017 and company website
2) Grand View Research 12/2016 and own estimates based on census data

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$7,313
$12,880
$-
$2,000
$4,000
$6,000
$8,000
$10,000
$12,000
$14,000
2016 2022
PSA Market
Professional Services Automation is used to standardize business processes
and provide reports, insights, and control for resources and projects.
$USD in millions
Source: Grand View Research 2016
Multi-Billion
Dollar Market
Double Digit
Growth
Shift to Cloud
Globalization

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Project Collaboration Software
(Generic + PPM)
Professional Services
Automation
Time & Expense
Management

5. § PSA market remains fairly
nascent with no clear leader.
§ Mavenlink appears to be best
positioned having a more
robust product portfolio and
growth trajectory
§ FinancialForce is a strong
competitor, but has limitations
around Salesforce dependency
§ Netsuite appears to be ceding
market to competitors.
§ Upland interesting business as
it’s the only public company
and has executed a successful
roll-up strategy in the space
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Product Category
Professional Services Automation Competitors
Project
Management
Resource
Management
Team
Collaboration
Project
Accounting
BI / Analytics
Integrations
Sources: Datafox.com, Owler.com, Crunchbase.com, and various company websites.
Est. Employees
Total Funding
Est. Customers
2016 Est. Revenue $20-30M
+5,000
$84.5M
250
$20-30M
na
$194.0M
500
$40-70M
na
$38.0M
350
$20-30M
+2,000
$91.0M
200
$30-40M
na
$28.5M
200
$74.5M
+2,500
$121.8M
350
Product/FeatureSet