The document provides an analysis of the global event management software market from 2013 to 2016. It finds that the market was worth $28 billion in 2012 and is projected to grow at a 3.3% CAGR to $32 billion by 2016. The market is highly fragmented with over 300 companies and no player having more than 20% market share in the US. While companies have high gross margins, many suffer losses due to high spending on sales and marketing. The analysis finds that startups have better asset usage than mid-sized firms. It also provides valuation scenarios for entrepreneurs, finding higher potential returns for those able to obtain venture funding.

1. Financial Analysis and Market Sizing of the
Global Event Management Software Market
Operational efficiency key in achieving a profitable bottom-line
bottom-
Debbie Wong, Senior Consultant
Renganathan K, Senior Research Analyst
Business and Financial Services
20-Nov-2013
© 2013 Frost & Sullivan. All rights reserved. This document contains highly confidential information and is the sole property of
Frost & Sullivan. No part of it may be circulated, quoted, copied or otherwise reproduced without the written approval of Frost & Sullivan.

2. Today’s Presenters
Renganathan K,
Debbie Wong,
Senior Research Analyst
Frost & Sullivan
Over 6 years of experience in the IT
and consulting industry
•
Experience in Valuation and Financial Modelling
•
Six Sigma Green Belt holder
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Senior consultant
Frost & Sullivan
Over 15 years in the financial services and
consulting industry.
•Strategic
consulting experience in value
creation, operational strategy, business
development and marketing
2

3. Agenda
1
Introduction to the Global Event
Management Software Market
2
Market Dynamics
3
Financial Analysis
4
5
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Financial Returns for
PE/VC Investment
Bottomline
3

4. Introduction to the Global Event Management
Software Market
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5. Research Objectives and Scope
Research Objective
•
•
•
•
To analyze the global event management software market and identify key drivers and restraints
To estimate and forecast the market size of the market
To analyze the financial performance of the market and identify areas which can enable firms to
(financially) outperform in this market.
To evaluate the returns to an entrepreneur and investor participating in this market
Segments Covered
Geographic Scope: Global Study
•
•
Event Registration
Event-Related Mobile Applications
Ratios Analyzed
Global
•
•
•
•
Profitability
Activity (Turnover)
Liquidity
Solvency
Source: Frost & Sullivan analysis.
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6. Research Objective and Scope (continued)
Forecast Period
FY 2013–2016
Scope of Analysis
•
•
•
Who Will Benefit?
•
•
•
•
•
•
•
•
Event Management Software companies
Private Equity (PE) firms
Venture Capital (VC) investors
Fund managers
Retail investors
Sovereign wealth funds
Hedge funds
Insurance funds and other members of the
investing community
481 companies (Public & Private) across the
globe
647 funding transactions
Transactions include PE, VC, PIPE, M&A and
public offering transactions
Sources
• Frost & Sullivan in-house research expertise
• Established business and financial databases,
such as Capital IQ
• Company annual reports
• Published news
• Press releases
* FY Financial Year
Source: Frost & Sullivan analysis.
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7. Introduction – Global Event Management Software Market
Globally, there are 5 million meetings and events held
annually.
There are 512 million attendees at these meetings and
events.
Over $500 billion spent on meetings and events annually.
Event planners are still utilizing manual processes.
Event management software supports the process through
automation and helps improve efficiency, while driving event
costs down.
Source: Frost & Sullivan analysis.
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8. Addressable Market Sizing – Global Event Management
Software Market
The estimate 2012 total global addressable market size is $28.00 billion, with a projected CAGR of 3.3
percent over the next four years. This includes the software and non-software market.
Event Management Software Market: Addressable Market Size and Growth
Rate, Global, 2012-2016
33.00
5
4.5
4
31.00
3.5
3
30.00
2.5
29.00
2
1.5
28.00
Growth Rate (%)
$ Billion
32.00
1
27.00
26.00
Global EMS Market (software and
non-software)
Growth Rate (%)
0.5
2012
2013
2014
2015
2016
28.00
28.70
29.60
30.50
31.90
2.4
3.1
3.3
0
4.5
Source: Frost & Sullivan analysis.
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9. Market Share – U.S. Event Management Software
Market, 2012
Event Management Software Market: Market Share
Distribution, U.S., 2012
Tier 1
5.0% - 20.0%
Tier 2
1.0% - 5.0%
•The estimates may include all products and
services (including ancillary products/services)
that each company provides.
•This is a highly fragmented market comprised
of over 300 companies in the U.S. alone. Key
players include Active Network and Cvent.
•According to Frost & Sullivan analysis, the
largest players in the market have no more
than 15.0%-20.0% share.
Tier 3
0.26% - 1.0%
Market Share Range
Tier 4
•Other small players
•Manual processes
Source: Frost & Sullivan analysis.
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10. Market Drivers and Restraints – Event Management
Software Market
Business best
practices which
incorporate
event planning
tools/ software.
Economic growth will
support budget
allocations and
spending in the
meetings and event
market.
The growth of the
global event and
meetings market.
Moderate economic
growth projections.
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Restraints
Restraints
Restraints
Drivers
Drivers
Hotels increasingly
using RFP tools as
part of their
business growth
and marketing.
Customer IT budget
constraints.
Resistance to change;
event planners still
utilizing manual
processes for planning.
Source: Frost & Sullivan analysis.
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11. Market Trends – Event Management Software Market
Consolidation will eventually occur – niche players will
either combine with other companies are leave the industry
Customer focus – customer demands will drive future
products/tools
Integration of data analytics pre, post and during events to
help customers add-value to their clientele
Future Market Conditions
Present Market Conditions
Market evolving at a fast pace – no real saturation of the
market in the near term
Mobile and social media proliferation
Source: Frost & Sullivan analysis.
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12. Financial Attractiveness
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13. Key Takeaways for Investors
Event Management Software: Venture Capital Average EMS companies that received funding & private
Deal Value and Deal Volume (Global), FY 2009-2013
equity/venture capital companies that funded
EMS Companies
that received
Funding
Private Equity
Companies
QuickMobile Inc.
BDC Venture Capital
NightLife Labs LLC
Vancouver City Savings
Credit Union
Three Stage Media, Inc. Tribeca Venture Partners
Zerista, Inc.
New Markets Venture
Partners
ARSystems
International, Inc.
OnVantage, Inc.
The Grosvenor Funds
51Pegasi B.V.
VentureLink LP
ViewCentral, Inc.
Valhalla Partners
Vibrant Solutions
Tribeca Venture Partners
*Please note that similar analysis of deal values, volumes and types
of deals are available in the study.
In the venture capital segment, there is a trend of declining
average deal values despite an increase in the number of
VentureLink Brighter
Future Fund
deals signifying greater investor prudence and reduced
appetite for risk taking abilities.
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Source: Frost & Sullivan analysis.
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14. Key Takeaways for Investors
Financial Indicators- What do the fundamentals indicate?
Event Management Software industry: Profitability Margin Analysis, FY 2009-2013
Despite relatively, high gross margins, industry participants witnessed an erosion in profits due to very high
levels of SG&A expenses. This is one of the critical reasons for the negative net income margins in this industry.
*Please note that a detailed financial ratio analysis across all categories is available in the study
Event Management Software industry: Asset Turnover Analysis, FY 2009-2013
In terms of asset utilisation, smaller start-ups in the event management software market have displayed greater
efficiency than their mid-sized counterparts. The total asset turnover for these firms has been range-bound between
1.2x and 1.4x between 2009 and 2013. This is greater than the industry average which has been stable at 1.0x during
Source: Frost & Sullivan analysis.
the said period. Mid-sized firms on the hand have ratios lesser than 1.0x.
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15. Valuation Scenario
The study outlines two scenarios in order to asses the attractiveness of the event management software market for a
prospective entrepreneur
Scenario One: Entrepreneur with access to Venture Capital funding
Scenario Two: Entrepreneur with no Venture Capital funding
Key Takeaways- A Snapshot
Key Investor Criterion
Unit
Start-Up
Mid-Size
IRR for Entrepreneur
%
X
X
NPV for Entrepreneur
$
X
X
Initial Capital Expenditure
$
X
X
Capital Expenditure as a Percentage of Sales Average (Year 1 to
Year 10)
%
X
X
Equity Investment
$
X
X
% Stake Acquired by Investor
%
X
X
Stake due to ESOP
%
6.0
10.0
Sales CAGR (Year 1 to Year 10)
%
X
X
COGS CAGR (Year 1 to Year 10)
%
X
X
Selling and Marketing as % of Sales Average (Year 1 to Year 10)
%
X
General Administration as % of Sales (Year 1)
%
General Administration CAGR (Year 1 to Year 10)
Research & Development as % of Sales Average (Year 1 to Year
10)
The recovering US economy
supplemented by an increased focus of
PE investors in the event management
software market is expected to effect a
marginal change in exit routes and
increasingly favourable exit valuations for
VCs in the next 18 to 24 months.
Sample Companies included
Company Name
2012
Revenue ($
Million)
X
The Active Network, Inc.
418.9
X
X
Cvent, Inc.
83.5
%
4.5
4.5
The Pulse Network, Inc.
3.6
%
X
X
Note: Each of the metrics mentioned here has several underlying
assumptions which are detailed in the study.
Source: Frost & Sullivan analysis.
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16. Conclusion
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17. Conclusion
•
Aided by factors such as a recovering economy, growth in the event management software
market is expected to continue with no real saturation of the market in the near term. This is
expected for all segments within the event management software market.
•
Firms offering integrated event management solutions are expected to attract more clients and
thus increase market share.
•
More than a focus on increasing sales, both investors and entrepreneurs need to focus on
operational and financial prudence to ensure a positive bottom-line. This is essential to
overcome the relatively high levels of SG&A expenses in this market.
Source: Frost & Sullivan analysis.
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21. For Additional Information
Debbie Wong
Senior Consultant
Business & Financial Services
(210) 771-8168
Debbie.wong@frost.com
Shrikanth S
Industry Manager
Business & Financial Services
shrikanths@frost.com
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Renganathan K
Research Analyst
Business & Financial Services
Renganathank@frost.com
Britni Myers
Corporate Communications
Business & Financial Services
Britni.myers@frost.com
21