LEONIS CREDENTIALS & SERVICES
▪ Leonis solely focuses on providing M&A and Growth Capital advisory services to both high-growth and well- established software and technology companies
▪ Leonis core areas of focus include:
▪ Sell-side M&A: represent companies looking to be acquired by a strategic or go through a fulsome liquidity event with a financial sponsor
▪ Capital Raises:
• Majority Equity Raises: Recapitalizations from private equity & growth equity firms who understand the sector and will be able to partner with management to inject capital and provide expertise to maximize the company’s growth
• Minority Equity Raises: Equity investments from private equity and strategic partners who bring capital and market expertise to bear
▪ Retained Advisory Services: strategic guidance to assist management in maximizing firm value ahead of a potential liquidity event, as well as manage inbound offers and solicitations
FIRM OVERVIEW
▪ Bankers with over 50 years of combined experience in bulge bracket Wall Street firms and Middle Market
▪ Team has executed over 105 M&A, restructuring and capital raising deals with cumulative transaction values over $170 billion
▪ Team executed eight deals in the last twelve months with an 85% close rate
▪ Deep knowledge of strategic and financial buyers with a proprietary database of more than 4,200 private equity investors and 1,800 strategic acquirers
▪ Team with experience advising, operating and investing in businesses within the firm’s core areas provides an unbiased view of how “the other side” will look at a deal
Robert Koven Leonis Partners 1st Quarter 2018 IT Services AnalysisRobert Koven
LEONIS CREDENTIALS & SERVICES
▪ Leonis solely focuses on providing M&A and Growth Capital advisory services to both high-growth and well- established technology and technology services companies
▪ Leonis core areas of focus include:
▪ Sell-side M&A: represent companies looking to be acquired by a strategic or go through a fulsome liquidity event with a financial sponsor
▪ Capital Raises:
• Majority Equity Raises: Recapitalizations from private equity & growth equity firms who understand the sector and will be able to partner with management to inject capital and provide expertise to maximize the company’s growth
• Minority Equity Raises: Equity investments from private equity and strategic partners who bring capital and market expertise to bear
▪ Retained Advisory Services: strategic guidance to assist management in maximizing firm value ahead of a potential liquidity event, as well as manage inbound offers and solicitations
FIRM OVERVIEW
▪ Bankers with over 50 years of combined experience in bulge bracket Wall Street firms and Middle Market
▪ Team has executed over 105 M&A, restructuring and capital raising deals with cumulative transaction values over $170 billion
▪ Team executed eight deals in the last twelve months with an 85% close rate
▪ Deep knowledge of strategic and financial buyers with a proprietary database of more than 4,200 private equity investors and 1,800 strategic acquirers
▪ Team with experience advising, operating and investing in businesses within the firm’s core areas provides an unbiased view of how “the other side” will look at a deal
Robert Koven Leonis Partners 4th Quarter 2017 SAAS AnalysisRobert Koven
LEONIS CREDENTIALS & SERVICES
▪ Leonis solely focuses on providing M&A and Growth Capital advisory services to both high-growth and well- established software and technology companies
▪ Leonis core areas of focus include:
▪ Sell-side M&A: represent companies looking to be acquired by a strategic or go through a fulsome liquidity event with a financial sponsor
▪ Capital Raises:
• Majority Equity Raises: Recapitalizations from private equity & growth equity firms who understand the sector and will be able to partner with management to inject capital and provide expertise to maximize the company’s growth
• Minority Equity Raises: Equity investments from private equity and strategic partners who bring capital and market expertise to bear
▪ Retained Advisory Services: strategic guidance to assist management in maximizing firm value ahead of a potential liquidity event, as well as manage inbound offers and solicitations
FIRM OVERVIEW
▪ Bankers with over 50 years of combined experience in bulge bracket Wall Street firms and Middle Market
▪ Team has executed over 105 M&A, restructuring and capital raising deals with cumulative transaction values over $170 billion
▪ Team executed eight deals in the last twelve months with an 85% close rate
▪ Deep knowledge of strategic and financial buyers with a proprietary database of more than 4,200 private equity investors and 1,800 strategic acquirers
▪ Team with experience advising, operating and investing in businesses within the firm’s core areas provides an unbiased view of how “the other side” will look at a deal
Robert Koven Leonis Partners 4th Quarter 2017 IT Services AnalysisRobert Koven
LEONIS CREDENTIALS & SERVICES
▪ Leonis solely focuses on providing M&A and Growth Capital advisory services to both high-growth and well- established technology and technology services companies
▪ Leonis core areas of focus include:
▪ Sell-side M&A: represent companies looking to be acquired by a strategic or go through a fulsome liquidity event with a financial sponsor
▪ Capital Raises:
• Majority Equity Raises: Recapitalizations from private equity & growth equity firms who understand the sector and will be able to partner with management to inject capital and provide expertise to maximize the company’s growth
• Minority Equity Raises: Equity investments from private equity and strategic partners who bring capital and market expertise to bear
▪ Retained Advisory Services: strategic guidance to assist management in maximizing firm value ahead of a potential liquidity event, as well as manage inbound offers and solicitations
FIRM OVERVIEW
▪ Bankers with over 50 years of combined experience in bulge bracket Wall Street firms and Middle Market
▪ Team has executed over 105 M&A, restructuring and capital raising deals with cumulative transaction values over $170 billion
▪ Team executed eight deals in the last twelve months with an 85% close rate
▪ Deep knowledge of strategic and financial buyers with a proprietary database of more than 4,200 private equity investors and 1,800 strategic acquirers
▪ Team with experience advising, operating and investing in businesses within the firm’s core areas provides an unbiased view of how “the other side” will look at a deal
Essential Elements for Better Corporate Travel in 2019CertifyInc
In a world of increasing personalization, business traveler expectations are being elevated to a point where their needs must be met at every step along the way. This webinar looks at new trends in corporate travel and how finance leaders can build future-proofed corporate travel policies that help manage spend and cuts costs.
The document discusses key metrics for evaluating marketplace efficiency and profitability. It finds that companies with a higher "Rule of 40" score, which measures revenue growth plus EBITDA margin, significantly outperformed those with a lower score. It also introduces the "Battery Growth Magic Number" which measures revenue growth minus sales and marketing spend as a percentage of revenue, and finds companies with a positive number significantly outperformed those with a negative number. The document concludes with three rules for efficient marketplaces promoted by Battery Ventures: 1) Have a positive Battery Growth Magic Number, 2) Migrate to subscription pricing, and 3) Achieve a 10x return on customer acquisition costs.
MBA Investment Bankers is presenting valuation and strategic options to the board of Khakis 'R Us, a publicly traded men's casual clothing retailer. Key information includes that Khakis has strong financial performance but a languishing stock price compared to competitors. MBA performed a discounted cash flow valuation that estimated the fair value of Khakis' stock at $10.50 per share. Comparable company and precedent transaction analyses provided supporting valuation ranges. MBA will recommend whether Khakis should sell the company or pursue an alternative strategic path.
The document outlines Intuit's investor day agenda and materials. It includes presentations on Intuit's strategy to win in key areas like the QuickBooks Online ecosystem, TurboTax online and mobile, accountants, technology, data and security. The document reflects on Intuit's successful transition to a cloud and platform business model over the past 4 years and doubling of its total addressable market. It discusses priorities and metrics for the coming year to continue delighting customers through product experiences, data insights, ecosystem contributions and security leadership.
We recommend Cintas Corporation as a HOLD with a 12-month price target of $81, representing an upside of 0.77% from the current price of $81.32. Key factors leading to a neutral outlook include limited opportunities for organic growth, continued emphasis on cross-selling and acquisitions to improve margins, and an aggressive capital return plan including share buybacks.
Robert Koven Leonis Partners 1st Quarter 2018 IT Services AnalysisRobert Koven
LEONIS CREDENTIALS & SERVICES
▪ Leonis solely focuses on providing M&A and Growth Capital advisory services to both high-growth and well- established technology and technology services companies
▪ Leonis core areas of focus include:
▪ Sell-side M&A: represent companies looking to be acquired by a strategic or go through a fulsome liquidity event with a financial sponsor
▪ Capital Raises:
• Majority Equity Raises: Recapitalizations from private equity & growth equity firms who understand the sector and will be able to partner with management to inject capital and provide expertise to maximize the company’s growth
• Minority Equity Raises: Equity investments from private equity and strategic partners who bring capital and market expertise to bear
▪ Retained Advisory Services: strategic guidance to assist management in maximizing firm value ahead of a potential liquidity event, as well as manage inbound offers and solicitations
FIRM OVERVIEW
▪ Bankers with over 50 years of combined experience in bulge bracket Wall Street firms and Middle Market
▪ Team has executed over 105 M&A, restructuring and capital raising deals with cumulative transaction values over $170 billion
▪ Team executed eight deals in the last twelve months with an 85% close rate
▪ Deep knowledge of strategic and financial buyers with a proprietary database of more than 4,200 private equity investors and 1,800 strategic acquirers
▪ Team with experience advising, operating and investing in businesses within the firm’s core areas provides an unbiased view of how “the other side” will look at a deal
Robert Koven Leonis Partners 4th Quarter 2017 SAAS AnalysisRobert Koven
LEONIS CREDENTIALS & SERVICES
▪ Leonis solely focuses on providing M&A and Growth Capital advisory services to both high-growth and well- established software and technology companies
▪ Leonis core areas of focus include:
▪ Sell-side M&A: represent companies looking to be acquired by a strategic or go through a fulsome liquidity event with a financial sponsor
▪ Capital Raises:
• Majority Equity Raises: Recapitalizations from private equity & growth equity firms who understand the sector and will be able to partner with management to inject capital and provide expertise to maximize the company’s growth
• Minority Equity Raises: Equity investments from private equity and strategic partners who bring capital and market expertise to bear
▪ Retained Advisory Services: strategic guidance to assist management in maximizing firm value ahead of a potential liquidity event, as well as manage inbound offers and solicitations
FIRM OVERVIEW
▪ Bankers with over 50 years of combined experience in bulge bracket Wall Street firms and Middle Market
▪ Team has executed over 105 M&A, restructuring and capital raising deals with cumulative transaction values over $170 billion
▪ Team executed eight deals in the last twelve months with an 85% close rate
▪ Deep knowledge of strategic and financial buyers with a proprietary database of more than 4,200 private equity investors and 1,800 strategic acquirers
▪ Team with experience advising, operating and investing in businesses within the firm’s core areas provides an unbiased view of how “the other side” will look at a deal
Robert Koven Leonis Partners 4th Quarter 2017 IT Services AnalysisRobert Koven
LEONIS CREDENTIALS & SERVICES
▪ Leonis solely focuses on providing M&A and Growth Capital advisory services to both high-growth and well- established technology and technology services companies
▪ Leonis core areas of focus include:
▪ Sell-side M&A: represent companies looking to be acquired by a strategic or go through a fulsome liquidity event with a financial sponsor
▪ Capital Raises:
• Majority Equity Raises: Recapitalizations from private equity & growth equity firms who understand the sector and will be able to partner with management to inject capital and provide expertise to maximize the company’s growth
• Minority Equity Raises: Equity investments from private equity and strategic partners who bring capital and market expertise to bear
▪ Retained Advisory Services: strategic guidance to assist management in maximizing firm value ahead of a potential liquidity event, as well as manage inbound offers and solicitations
FIRM OVERVIEW
▪ Bankers with over 50 years of combined experience in bulge bracket Wall Street firms and Middle Market
▪ Team has executed over 105 M&A, restructuring and capital raising deals with cumulative transaction values over $170 billion
▪ Team executed eight deals in the last twelve months with an 85% close rate
▪ Deep knowledge of strategic and financial buyers with a proprietary database of more than 4,200 private equity investors and 1,800 strategic acquirers
▪ Team with experience advising, operating and investing in businesses within the firm’s core areas provides an unbiased view of how “the other side” will look at a deal
Essential Elements for Better Corporate Travel in 2019CertifyInc
In a world of increasing personalization, business traveler expectations are being elevated to a point where their needs must be met at every step along the way. This webinar looks at new trends in corporate travel and how finance leaders can build future-proofed corporate travel policies that help manage spend and cuts costs.
The document discusses key metrics for evaluating marketplace efficiency and profitability. It finds that companies with a higher "Rule of 40" score, which measures revenue growth plus EBITDA margin, significantly outperformed those with a lower score. It also introduces the "Battery Growth Magic Number" which measures revenue growth minus sales and marketing spend as a percentage of revenue, and finds companies with a positive number significantly outperformed those with a negative number. The document concludes with three rules for efficient marketplaces promoted by Battery Ventures: 1) Have a positive Battery Growth Magic Number, 2) Migrate to subscription pricing, and 3) Achieve a 10x return on customer acquisition costs.
MBA Investment Bankers is presenting valuation and strategic options to the board of Khakis 'R Us, a publicly traded men's casual clothing retailer. Key information includes that Khakis has strong financial performance but a languishing stock price compared to competitors. MBA performed a discounted cash flow valuation that estimated the fair value of Khakis' stock at $10.50 per share. Comparable company and precedent transaction analyses provided supporting valuation ranges. MBA will recommend whether Khakis should sell the company or pursue an alternative strategic path.
The document outlines Intuit's investor day agenda and materials. It includes presentations on Intuit's strategy to win in key areas like the QuickBooks Online ecosystem, TurboTax online and mobile, accountants, technology, data and security. The document reflects on Intuit's successful transition to a cloud and platform business model over the past 4 years and doubling of its total addressable market. It discusses priorities and metrics for the coming year to continue delighting customers through product experiences, data insights, ecosystem contributions and security leadership.
We recommend Cintas Corporation as a HOLD with a 12-month price target of $81, representing an upside of 0.77% from the current price of $81.32. Key factors leading to a neutral outlook include limited opportunities for organic growth, continued emphasis on cross-selling and acquisitions to improve margins, and an aggressive capital return plan including share buybacks.
The document summarizes the 2017 Fintech100 report, which lists the top 100 global fintech innovators. It provides details on the selection criteria and breakdown of companies by region, sector, and funding. Key highlights include the continued dominance of Chinese companies, with Ant Financial ranked first. Lending and payments companies make up a large portion of the list. The report also notes the rise of data and analytics companies and the emergence of open banking globally.
2017 William Blair & Company Investment Banking Case Competition - FinalistIan Socrates
- Patterson Education Group is a scalable education platform delivering exceptional student outcomes through individually tailored curriculums and a talented executive team.
- Valuation analysis values PEG's enterprise value between $157-$177 million based on comparable, precedent, and discounted cash flow analyses.
- The recommendation is to pursue a sale to a strategic buyer given industry consolidation trends and PEG's compelling growth profile and market position.
This presentation summarizes JPMorgan Chase & Co.'s business operations, financial performance, competitive position, and valuation. Key points include:
- JPMorgan is the largest US bank by market cap and has a large physical branch and ATM network across the US and globally.
- It has various business segments including investment banking, asset management, and retail banking.
- JPMorgan was profitable during the financial crisis while its competitors reported large losses. It has a strong capital position.
- Analysts value JPMorgan at $54.74/share based on dividend discount and relative P/E valuation models, representing a buy rating.
This document provides an overview of financial goal planning in 3 steps: 1) Identify and prioritize goals like retirement, education, marriage and calculate costs, 2) Allocate resources to each goal based on risk tolerance and choose appropriate instruments, 3) Monitor performance against expectations and update strategies. Typical financial goals are discussed along with analysis of instruments like mutual funds, EPF, NPS and their returns. The importance of starting early with regular investments tailored to each goal and risk profile is emphasized.
From Good to Great: How to Ace Your Marketplace FundraiseBattery Ventures
At the Marketplace Conference Online December 2020, Battery Ventures' Justin Da Rosa teamed up with Speedinvest's Philip Specht on the core marketplace metrics investors evaluate during the fundraising process from seed to growth.
At the end of the year, we often reflect on the current state of the venture market in technology. We are sharing it with our broader community in the hope that someone will find it informative, interesting or at least entertaining.
F-Prime Capital prepared a market analysis for 2018's year-end discussion. We are sharing it with our broader community in the hope that someone will find in informative, interesting or at least entertaining.
Analysis of recent transactions in BPO Industry detailing on Transaction Multiples (Revenue & EBITDA), Multiples Chart, Active Buyers & Transaction Data.
IT Shades publishes a monthly edition focused on platforms and applications. This edition includes:
- Financial results and M&A activity in the sector, including Coupa Software growing revenues 39% and acquiring supply chain companies, and DocuSign growing revenues 57% with billings up 46%.
- Solution updates from companies like Starlims releasing a new forensic lab management solution and Amadeus partnering with airports on biometric technologies.
- The document provides updates across financials, solutions, partnerships, and other areas relevant to the platforms and applications industry. IT Shades' goal is to share this content and benefit readers.
Carriage Services is a publicly traded provider of funeral and cemetery services in the United States. It operates 170 funeral homes and 32 cemeteries across 28 states. The company has grown significantly through acquisitions over the past decade, with its stock price increasing from $7.5 to $27 per share. Analysts project continued growth due to demographic trends such as an aging population and increasing cremation rates. Valuation analyses estimate Carriage Services' stock price could reach $30-33 per share based on comparable company multiples and discounted cash flow modeling.
Ernie Humphrey presented on key findings from the 2019 T&E Trends Report. The report found that many organizations lack visibility into travel and expense data and control over spending. This is due to poor T&E management processes and a lack of dedicated expense management technology. Adopting expense management systems can improve efficiency, reduce costs, and increase compliance by making it easier for travelers to submit expenses and enabling straight-through processing. The presentation provided recommendations for organizations to map out their current T&E processes and costs in order to understand challenges and make a case for technology investments that address key pain points.
Hudson Bay company - new strategy analyze current issues (2015)Usman Chaudhry
The document discusses several issues and alternatives facing Hudson's Bay Company, including improving management controls, expanding digital and off-price businesses, and potentially acquiring Holt Renfrew. It then provides a detailed financial analysis of expanding Saks Fifth Avenue stores into Canada, finding the net present value of such an investment would be $133 million based on projections. Key performance measures like revenue, expenses, cash flow, and net income are forecasted for potential Saks locations over 5 years.
- The document discusses trends in the financial advisor landscape based on research from Cogent Reports.
- It finds that while the total number of advisors is flat, the number of RIAs has increased 7% since 2015. Most advisors now derive over half their compensation from fee-based sources rather than commissions.
- Advisors are increasingly using passively managed and low-fee investments like ETFs and index funds, with allocations to ETFs up 21% since 2015. They also report relationships with fewer mutual fund providers.
Software 2018: Where Are We Now and Where Are We Going?Battery Ventures
Initially presented at CloudNY as follow up to last year’s Software 2017, this year’s presentation—authored by Battery’s Neeraj Agrawal and Logan Bartlett–provides an update on the shifting software landscape and just where things are headed.
T&E Trends and Best Practices in the Digital WorldAshley Emery
T&E Trends and Best Practices in the Digital World
Original air date: October 30, 2019
Join us to discover five key themes from the 2019 Travel and Expense Management Trends Report, a comprehensive survey of almost 600finance professionals. You'll learn specific ways to lower T&E report processing costs, positively impact the productivity of your travelers, and improve your company’s working capital management.
The Digital Transformation of Asset & Wealth ManagementKurt Harrison
The document discusses the challenges facing the asset and wealth management industry, including poor investment performance, investor preference for passive strategies and ETFs, pressure on trading and operations, the rise of robo-advisory, and increased regulatory requirements. It argues that asset managers will need to adapt by embracing quantitative strategies, passive products, digitization, and hiring staff with skills in areas like artificial intelligence, electronic trading, and digital client experiences. Regulations are also driving the need for more technology-oriented compliance officers.
Wilshire Liquid Alternatives Industry Monitor for Q4 2018Wilshire
The quarterly Wilshire Liquid Alternatives Industry Monitor provides highlights and insights into the trends and capital flows of the liquid alternatives space.
Wilshire Liquid Alternatives Industry Monitor for Q4 2018Wilshire
The quarterly Wilshire Liquid Alternatives Industry Monitor provides highlights and insights into the trends and capital flows of the liquid alternatives space.
Wilshire Liquid Alternatives Industry Monitor for Q4 2018Wilshire
The quarterly Wilshire Liquid Alternatives Industry Monitor provides highlights and insights into the trends and capital flows of the liquid alternatives space.
Digital Disruption in Wealth Management - FinanceConnect SingaporeLinkedIn Singapore
The document discusses digital disruption in the wealth management industry. Some key points:
- Wealth management firms face significant disruption from advances in technology, changing client behaviors and demands, and increasing regulation.
- HNW clients expect their future relationships with firms to be digital and 65% may leave firms lacking integrated digital channels. Younger clients have the highest digital demands.
- Firms have been slow to adopt digital solutions due to myths around clients not wanting digital tools and channels cannibalizing business. However, digital priorities will be essential to providing seamless client experiences.
- HubSpot reported Q3 2017 results, with revenue growth of 22% year-over-year to $82.3 million.
- The company discussed its continued focus on balancing revenue growth and margin improvement, with gross margins increasing to 81% in Q3 2017.
- HubSpot reiterated its commitment to its growth strategy, which includes expanding its product offerings, growing its international business, upselling existing customers, and tapping into the large market opportunity for its inbound platform.
The document discusses key factors for efficient growth in SaaS businesses. It recommends measuring a business's growth using two metrics: growth efficiency (net new annual recurring revenue per dollar of sales and marketing spend) and recurring margin (gross margin minus research and development, general and administrative costs). It analyzes four main levers to improve growth efficiency: customer acquisition, success/retention, recurring margins, and pricing. Improving customer acquisition efficiency through strategies like land-and-expand could have the biggest cash flow impact. The document explores opportunities to boost efficiency in areas like acquisition, pricing, and packaging.
The document summarizes the 2017 Fintech100 report, which lists the top 100 global fintech innovators. It provides details on the selection criteria and breakdown of companies by region, sector, and funding. Key highlights include the continued dominance of Chinese companies, with Ant Financial ranked first. Lending and payments companies make up a large portion of the list. The report also notes the rise of data and analytics companies and the emergence of open banking globally.
2017 William Blair & Company Investment Banking Case Competition - FinalistIan Socrates
- Patterson Education Group is a scalable education platform delivering exceptional student outcomes through individually tailored curriculums and a talented executive team.
- Valuation analysis values PEG's enterprise value between $157-$177 million based on comparable, precedent, and discounted cash flow analyses.
- The recommendation is to pursue a sale to a strategic buyer given industry consolidation trends and PEG's compelling growth profile and market position.
This presentation summarizes JPMorgan Chase & Co.'s business operations, financial performance, competitive position, and valuation. Key points include:
- JPMorgan is the largest US bank by market cap and has a large physical branch and ATM network across the US and globally.
- It has various business segments including investment banking, asset management, and retail banking.
- JPMorgan was profitable during the financial crisis while its competitors reported large losses. It has a strong capital position.
- Analysts value JPMorgan at $54.74/share based on dividend discount and relative P/E valuation models, representing a buy rating.
This document provides an overview of financial goal planning in 3 steps: 1) Identify and prioritize goals like retirement, education, marriage and calculate costs, 2) Allocate resources to each goal based on risk tolerance and choose appropriate instruments, 3) Monitor performance against expectations and update strategies. Typical financial goals are discussed along with analysis of instruments like mutual funds, EPF, NPS and their returns. The importance of starting early with regular investments tailored to each goal and risk profile is emphasized.
From Good to Great: How to Ace Your Marketplace FundraiseBattery Ventures
At the Marketplace Conference Online December 2020, Battery Ventures' Justin Da Rosa teamed up with Speedinvest's Philip Specht on the core marketplace metrics investors evaluate during the fundraising process from seed to growth.
At the end of the year, we often reflect on the current state of the venture market in technology. We are sharing it with our broader community in the hope that someone will find it informative, interesting or at least entertaining.
F-Prime Capital prepared a market analysis for 2018's year-end discussion. We are sharing it with our broader community in the hope that someone will find in informative, interesting or at least entertaining.
Analysis of recent transactions in BPO Industry detailing on Transaction Multiples (Revenue & EBITDA), Multiples Chart, Active Buyers & Transaction Data.
IT Shades publishes a monthly edition focused on platforms and applications. This edition includes:
- Financial results and M&A activity in the sector, including Coupa Software growing revenues 39% and acquiring supply chain companies, and DocuSign growing revenues 57% with billings up 46%.
- Solution updates from companies like Starlims releasing a new forensic lab management solution and Amadeus partnering with airports on biometric technologies.
- The document provides updates across financials, solutions, partnerships, and other areas relevant to the platforms and applications industry. IT Shades' goal is to share this content and benefit readers.
Carriage Services is a publicly traded provider of funeral and cemetery services in the United States. It operates 170 funeral homes and 32 cemeteries across 28 states. The company has grown significantly through acquisitions over the past decade, with its stock price increasing from $7.5 to $27 per share. Analysts project continued growth due to demographic trends such as an aging population and increasing cremation rates. Valuation analyses estimate Carriage Services' stock price could reach $30-33 per share based on comparable company multiples and discounted cash flow modeling.
Ernie Humphrey presented on key findings from the 2019 T&E Trends Report. The report found that many organizations lack visibility into travel and expense data and control over spending. This is due to poor T&E management processes and a lack of dedicated expense management technology. Adopting expense management systems can improve efficiency, reduce costs, and increase compliance by making it easier for travelers to submit expenses and enabling straight-through processing. The presentation provided recommendations for organizations to map out their current T&E processes and costs in order to understand challenges and make a case for technology investments that address key pain points.
Hudson Bay company - new strategy analyze current issues (2015)Usman Chaudhry
The document discusses several issues and alternatives facing Hudson's Bay Company, including improving management controls, expanding digital and off-price businesses, and potentially acquiring Holt Renfrew. It then provides a detailed financial analysis of expanding Saks Fifth Avenue stores into Canada, finding the net present value of such an investment would be $133 million based on projections. Key performance measures like revenue, expenses, cash flow, and net income are forecasted for potential Saks locations over 5 years.
- The document discusses trends in the financial advisor landscape based on research from Cogent Reports.
- It finds that while the total number of advisors is flat, the number of RIAs has increased 7% since 2015. Most advisors now derive over half their compensation from fee-based sources rather than commissions.
- Advisors are increasingly using passively managed and low-fee investments like ETFs and index funds, with allocations to ETFs up 21% since 2015. They also report relationships with fewer mutual fund providers.
Software 2018: Where Are We Now and Where Are We Going?Battery Ventures
Initially presented at CloudNY as follow up to last year’s Software 2017, this year’s presentation—authored by Battery’s Neeraj Agrawal and Logan Bartlett–provides an update on the shifting software landscape and just where things are headed.
T&E Trends and Best Practices in the Digital WorldAshley Emery
T&E Trends and Best Practices in the Digital World
Original air date: October 30, 2019
Join us to discover five key themes from the 2019 Travel and Expense Management Trends Report, a comprehensive survey of almost 600finance professionals. You'll learn specific ways to lower T&E report processing costs, positively impact the productivity of your travelers, and improve your company’s working capital management.
The Digital Transformation of Asset & Wealth ManagementKurt Harrison
The document discusses the challenges facing the asset and wealth management industry, including poor investment performance, investor preference for passive strategies and ETFs, pressure on trading and operations, the rise of robo-advisory, and increased regulatory requirements. It argues that asset managers will need to adapt by embracing quantitative strategies, passive products, digitization, and hiring staff with skills in areas like artificial intelligence, electronic trading, and digital client experiences. Regulations are also driving the need for more technology-oriented compliance officers.
Wilshire Liquid Alternatives Industry Monitor for Q4 2018Wilshire
The quarterly Wilshire Liquid Alternatives Industry Monitor provides highlights and insights into the trends and capital flows of the liquid alternatives space.
Wilshire Liquid Alternatives Industry Monitor for Q4 2018Wilshire
The quarterly Wilshire Liquid Alternatives Industry Monitor provides highlights and insights into the trends and capital flows of the liquid alternatives space.
Wilshire Liquid Alternatives Industry Monitor for Q4 2018Wilshire
The quarterly Wilshire Liquid Alternatives Industry Monitor provides highlights and insights into the trends and capital flows of the liquid alternatives space.
Digital Disruption in Wealth Management - FinanceConnect SingaporeLinkedIn Singapore
The document discusses digital disruption in the wealth management industry. Some key points:
- Wealth management firms face significant disruption from advances in technology, changing client behaviors and demands, and increasing regulation.
- HNW clients expect their future relationships with firms to be digital and 65% may leave firms lacking integrated digital channels. Younger clients have the highest digital demands.
- Firms have been slow to adopt digital solutions due to myths around clients not wanting digital tools and channels cannibalizing business. However, digital priorities will be essential to providing seamless client experiences.
- HubSpot reported Q3 2017 results, with revenue growth of 22% year-over-year to $82.3 million.
- The company discussed its continued focus on balancing revenue growth and margin improvement, with gross margins increasing to 81% in Q3 2017.
- HubSpot reiterated its commitment to its growth strategy, which includes expanding its product offerings, growing its international business, upselling existing customers, and tapping into the large market opportunity for its inbound platform.
The document discusses key factors for efficient growth in SaaS businesses. It recommends measuring a business's growth using two metrics: growth efficiency (net new annual recurring revenue per dollar of sales and marketing spend) and recurring margin (gross margin minus research and development, general and administrative costs). It analyzes four main levers to improve growth efficiency: customer acquisition, success/retention, recurring margins, and pricing. Improving customer acquisition efficiency through strategies like land-and-expand could have the biggest cash flow impact. The document explores opportunities to boost efficiency in areas like acquisition, pricing, and packaging.
This document discusses seven steps for achieving customer success at scale for software as a service (SaaS) companies. It begins by reviewing the current state of the SaaS business model and profitability challenges. It then outlines four cost buckets that impact profitability: cost of goods sold, customer acquisition costs, customer expansion costs, and customer retention costs. The document proposes that customer success is critical to long-term profitability. It provides seven steps for customer success at scale, including establishing a charter, financial model, critical practices, success metrics, skills, offers, and technology to support the customer lifecycle from adoption to renewal to expansion.
Many mid-sized companies are still struggling with growth after the recession. Finance executives recognize the need to increase investment across areas like technology, facilities, staffing, and marketing to fuel growth. However, over half of executives say their companies are not doing any better than a year ago. To support this increased investment, many companies will need to seek funding from commercial lenders beyond their own operating cash flows and reserves. The document suggests that lenders can help these mid-sized clients by understanding their unique business challenges, providing customized funding solutions, and assisting with regulatory requirements to help companies achieve their growth ambitions.
Shopify had over 275,000 active merchants on its platform in Q1 2016, generating over $2.7 billion in gross merchandise volume (GMV). The document discusses Shopify's financial highlights, including strong and consistent revenue growth, a powerful recurring subscription-based business model, and operating leverage. It also outlines Shopify's growth vectors such as acquiring more merchants and partners, developing more solutions, and expanding into more international markets and sales channels.
This document provides an overview of a proposed acquisition of ITStaffing, Inc. by Leonidas Capital. The presentation includes:
1) An agenda outlining the topics to be covered, including introductions, situational analysis, offer analysis comparing proposals from Staffco and HGE, valuation analysis, and a recommendation.
2) Background information on Leonidas Capital and an overview of the IT staffing industry.
3) Details on ITStaffing, Inc., including financials, growth trends, and strengths as an acquisition target.
4) Analyses of the acquisition proposals from Staffco and HGE, including valuation ranges implied by each offer.
5) Valuation analyses using public comparable
Shopify is a multi-channel commerce platform that powers over 200,000 active merchants. In Q3 2015, Shopify merchants generated over $1.9 billion in sales. The document discusses Shopify's financial highlights including strong and consistent growth in revenue, monthly recurring revenue, and gross merchandise volume driven by acquiring more merchants and introducing new solutions. It also outlines Shopify's powerful recurring revenue business model and operating leverage.
Shopify is an e-commerce platform that powers over 200,000 active merchants with $1.9 billion in GMV in Q3 2015. The document discusses Shopify's multi-channel commerce platform that allows merchants to manage sales across all channels through a single integrated back office. It highlights Shopify's growing merchant base and financials including strong and consistent growth in revenue, monthly recurring revenue, and GMV driven by new merchants and solutions.
Shopify is an e-commerce platform that powers over 200,000 active merchants with $1.9 billion in gross merchandise volume in Q3 2015. The document discusses Shopify's multi-channel commerce platform that provides a single integrated back office to power online stores, physical retail locations, and sales across all channels. It highlights Shopify's growing merchant base and financial results including strong and consistent growth in revenue, monthly recurring revenue, and gross merchandise volume driven by more merchants and solutions.
Shopify is an ecommerce platform that serves over 300,000 active merchants with $3.4 billion in GMV in Q2 2016. The document discusses Shopify's growth including strong and consistent increases in revenue, monthly recurring revenue, and GMV driven by acquiring more merchants and partnerships. It highlights Shopify's powerful recurring revenue business model and operating leverage. The presentation provides an overview of Shopify's market opportunity and growth strategies going forward including expanding to more merchants, partners, solutions, channels and international markets.
This document discusses forward-looking statements and the risks and uncertainties involved. It notes that while management believes its assumptions are reasonable, actual results could differ materially from expectations. It also notes that increased sales or growth following implementation of its platform may not be solely due to the platform and could be affected by other factors. Finally, it discusses the use of non-GAAP financial measures to supplement GAAP measures.
Lauren Kelley, CEO of OPEXEngine, presented on using benchmarks and peer comparisons to drive continuous improvement and top quartile performance. OPEXEngine is a leading benchmarking database for software companies, with data on over 1,000 customers ranging from $1M to $1B in revenue. Benchmarking against relevant peers allows companies to identify issues, set targets, and make incremental improvements to optimize growth, margins, and key metrics like the "Rule of 40". Kelley discussed common benchmarking use cases around improving efficiency, expanding margins, and maximizing returns on sales, marketing, and R&D investments.
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In a Venture Capital world that is obsessed with growth, recurring revenue and software as a service, after you validate that you have a solution that people are willing to pay for, there is an entire new world ahead of you in scaling that venture. For many, this involves an entirely new language and set of metrics to manage the business. For the startup that wants to make the leap to scale up and fast growth this should serve as a starting point for key insights and metrics for that journey.
Shopify is an e-commerce platform with over 175,000 active merchants and $10 billion in cumulative GMV. The document discusses Shopify's financial highlights including strong and consistent revenue, MRR, and GMV growth driven by growing merchant base and introduction of new products. It also notes Shopify's powerful recurring revenue business model and operating leverage with expanding gross margins and decreasing operating expenses as a percentage of revenue.
This document contains forward-looking statements about the company's plans, estimates, beliefs and assumptions. It notes that actual results may differ materially from what is projected. It also discusses risks associated with forward-looking statements and notes that references to case studies do not necessarily mean the company's platform was the only factor in growth. Finally, it defines non-GAAP financial measures used to supplement GAAP reporting and provides reconciliations between non-GAAP and GAAP measures.
This document contains forward-looking statements about the company's plans, intentions and expectations, which are based on management's views of historical trends and future developments. It cautions that actual results may differ from these statements due to risks and uncertainties. It also believes the case studies presented provide a representative sample of how merchants have used its platform, but notes other factors may have contributed to increases in visits, growth and sales. Finally, it supplements GAAP financial measures with non-GAAP measures to provide additional information, and includes reconciliations between the GAAP and non-GAAP measures.
This document contains forward-looking statements about the company's plans, estimates, beliefs and assumptions. It notes that actual results may differ materially from what is projected. It also discusses non-GAAP financial measures used by the company to supplement GAAP reporting and provide additional useful information. Case studies of merchant experiences are also discussed but it is noted that many factors could have contributed to reported increases, not just the company's platform.
This document contains forward-looking statements about the company's plans, intentions and expectations, which are based on management's views of historical trends and future developments. It cautions that actual results may differ from these statements due to risks and uncertainties. It also notes that case studies of merchant growth do not necessarily mean the company's platform was the only contributing factor. Finally, it provides context for using non-GAAP financial measures to supplement GAAP reporting.
- The document discusses forward-looking statements made by the company regarding its plans, intentions, expectations and strategies. These statements involve known and unknown risks and uncertainties that could materially affect results.
- The company believes case studies presented provide a representative sample of how merchants have used its platform to grow, but other factors may have also contributed to increases in visits, growth and sales.
- Non-GAAP financial measures are used to supplement GAAP financial measures and exclude certain items like stock-based compensation expenses. Non-GAAP measures are not a substitute for GAAP measures.
“Amidst Tempered Optimism” Main economic trends in May 2024 based on the results of the New Monthly Enterprises Survey, #NRES
On 12 June 2024 the Institute for Economic Research and Policy Consulting (IER) held an online event “Economic Trends from a Business Perspective (May 2024)”.
During the event, the results of the 25-th monthly survey of business executives “Ukrainian Business during the war”, which was conducted in May 2024, were presented.
The field stage of the 25-th wave lasted from May 20 to May 31, 2024. In May, 532 companies were surveyed.
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✅ More survey results in the presentation.
✅ Video presentation: https://youtu.be/4ZvsSKd1MzE
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Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
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Understanding Ponzi Schemes
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Historical Context: Charles Ponzi and His Legacy
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Notable American Ponzi Schemes
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Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
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Robert Koven Leonis Partners 1st Quarter 2018 SAAS Analysis
1. LEONIS PARTNERS: 1ST QUARTER 2018 SAAS ANALYSIS
ANALY SIS OF SAAS VALUATIO NS & KEY DRIVERS IN PUBLIC AND PRIVATE MARKETS
2. LEONIS PARTNERS
EXPERIENCED SAAS ADVISORS
▪ Leonis provides M&A and Growth Capital advisory
services to both high-growth and well-established
software and technology companies
▪ Leonis core areas of focus:
▪ Sell-side M&A: Represent companies looking to be
acquired by a strategic or go through a fulsome liquidity
event with a financial sponsor
▪ Capital Raises:
• Majority Equity Raises: Recapitalizations from private
equity & growth equity firms who understand the
sector and will be able to partner with management to
inject capital and provide expertise to maximize the
company’s growth
• Minority Equity Raises: Equity investments from
growth equity and strategic partners who bring capital
and market expertise to bear
▪ Retained Advisory Services: Strategic guidance to assist
management in maximizing firm value ahead of a
potential liquidity event, as well as manage inbound
offers and solicitations
For more information or inquiries, please contact us at
info@leonispartners.com
2
SAAS TOMBSTONES
FIRM OVERVIEW
▪ Bankers with over 50 years of combined experience in bulge bracket
Wall Street firms and Middle Market
▪ Team has executed over 115 M&A, restructuring and capital raising deals
with cumulative transaction values over $180 billion
▪ Deep knowledge of strategic and financial buyers with a proprietary
database of more than 4,200 private equity investors and 1,800 domestic
and international strategic acquirers
▪ Team with experience advising, operating and investing in businesses
within the firm’s core areas provides an unbiased view of how “the other
side” will look at a deal
Has Acquired
$100,000,000
Equity Capital Raise
$20,000,000
LEONIS CREDENTIALS & SERVICES
Has Been Acquired By
Has Been Recapitalized
Debt Capital Raise Has Acquired
Has Merged With Has Been Acquired By
3. LEONIS SAAS INDEX
1Q 2018 INDEX SUMMARY
▪ Leonis’s proprietary SaaS Index is comprised of 70
publicly-traded software companies that offer their
services through a subscription-based pricing model
▪ The Leonis SaaS Index is an equally-weighted index
▪ In 1Q18, EV / Revenue valuations increased to all-time-
highs on an average valuation multiple basis
▪ Interestingly, this increase was in the face of a slight
deterioration in top-line growth rates. This is a trend
Leonis will be monitoring as we move through 2Q and 3Q
2018
▪ Multiple expansion amongst a backdrop of a volatile
trading environment in 1Q 2018
▪ Despite a steep sell-off in early 2016, SaaS companies
have significantly and consistently outperformed the
broader tech market over the past two years
▪ Industry multiples continue to be driven by a combination
of growth and profitability rather than “growth at any cost”
▪ 15 of the 70 companies in the index have gone public
within the last 24 months; to avoid overstating
performance, the index excludes a stock’s performance on
the day of its IPO. Additionally, major tech market movers
like Facebook, Google and Amazon do not qualify for the
index due to business model differentiation
3
SAAS INDEX PERFORMANCE – LAST 24 MONTHS
MULTIPLES & GROWTH RATES OVER TIMETHE LEONIS SAAS INDEX
Source: Pitchbook, Leonis Proprietary Transaction Database, Federal Reserve Economic Data.
Note: Market Data as of 3/31/2018.
5.52x
6.45x
5.24x
6.10x
6.73x 6.82x 6.62x
7.61x
33%
30% 30%
32%
34% 35%
32%
29%
20%
30%
40%
50%
60%
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
Avg. EV/Rev Multiple Avg. YoY Growth Rate
(25.0%)
(5.0%)
15.0%
35.0%
55.0%
75.0%
95.0%
115.0%
135.0%
Leonis SaaS Index Nasdaq Index
5. VALUATION
RULE OF 40 & THE IMPACT ON VALUATION
5
SAAS INDEX VALUATIONS COMPARED TO RULE OF 40RULE OF 40 EXPLAINED
CFO MARGINS + GROWTH RATE DISTRIBUTIONS
▪ The Rule of 40 states that if a company’s revenue growth (%) plus its
cash flow from operations (CFO) (%) is > 40, then the company is
operating efficiently and deserves a premium valuation multiple
▪ As shown on the following page, growth is the key driver of SaaS
multiples, but typically growth comes at a high cost and must be
weighed relative to profitability
▪ The Rule of 40 serves as a rule of thumb to identify which
companies are overpaying for top-line growth at the cost of excessive
bottom-line damage, and which are growing ‘efficiently’
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
(40%) (30%) (20%) (10%) 0% 10% 20% 30% 40%
RevenueGrowth(%)
CFO Margin (%)
5.12x 4.92x
6.02x
8.24x
9.01x
0.0x
1.0x
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
<10% 10-20% 20-30% 30-40% >40%
EV/Revenue
CFO Margin + Revenue Growth Rate
7x
11x
3x
Scale(EV/Rev.):
6. ▪ As shown below, valuations are highly correlated to
growth rates
▪ The distribution of EV/Rev multiples is relatively
normal and centered at 6-8x EV/ Rev with an average
growth rate of 30% at this multiple range
▪ Regression of bucketed average growth rates exhibits
direct correlation, with an R-squared of .87(1), which is
high for financial statistics
6
KEY SAAS REVENUE KPIS
THE IMPORTANCE OF GROWTH IN SAAS VALUATIONS
VALUATION
EV / REVENUE VALUATIONS AS A FUNCTION OF GROWTH
▪ SaaS Valuations are driven by the following key characteristics
• Revenue Retention Rate
• Customer Retention Rates
• Recurring (ARR or MRR) Growth Rates
• Gross Margin
• Total Addressable Market
• Customer Acquisition Cost (CAC) relative to the Long-term
value (LTV) of a customer
▪ SaaS companies receive high valuations due to their combination of
high gross profit margins and the recurring aspect of their existing
revenue base
▪ Large number of SaaS companies operate at negative margins for
extensive periods to fund sales growth
▪ Given the recurring, high retention-rate nature of the business, each
customer acquired is often a multi-year customer
▪ Investors look past current year’s cash burn, and instead focus on
how the company’s future will benefit from current growth initiatives
as they scale past their fixed costs
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
(1) Using a logarithmic regression in order to standardize the distribution of growth rates relative to EV/Rev multiples.
EV / REV MULTIPLE VS. TOP- LINE GROWTH
1
10
13
19
8
10
9
8% 14%
32%
30%
32%
30%
40%
y = 0.1556ln(x) + 0.0754
R² = 0.8705
0%
10%
20%
30%
40%
50%
60%
0
5
10
15
20
25
<2x 2-4x 4-6x 6-8x 8-10x 10-12x >12x
# of Companies YoY Growth Log. (YoY Growth)
7. VALUATIONS AROUND BREAKEVEN
▪ Of the 70 companies in the Leonis SaaS Index, 53
produced positive CFO (cash from operations) in 1Q18
▪ The median EV / Rev multiple of companies with
positive CFO is 6.95x vs. the those with negative CFO,
which trade at a median multiple of 6.07x EV/REV
• Despite significantly outpacing the growth rates of their
positive CFO peers, negative CFO companies still trade
at a discount due to concerns over their ability to
produce adequate cash flow
7
KEY PROFITABILITY KPIS
CFO VS. EBITDA
VALUATION
EV / REVENUE VALUATIONS DEPENDENT ON CASH FLOW
▪ In tracking profitability of rapidly growing younger SaaS businesses,
CFO (cash from operations) is often a preferable indication of where
profitability stands relative to EBITDA
• Primary functional difference is its inclusion of deferred
revenue, which a GAAP based EBITDA will not take into
account
• CFO is more akin to a “cash” EBITDA figure and will turn
positive ahead of GAAP EBITDA
▪ CFO – often turns positive ahead of EBITDA
• Preferred measure of bottom line cash profitability
▪ Gross Margin – Key indicator of how scalable the SaaS platform will
ultimately be (provides a notion of a high watermark and of the
quality of the revenue base).
▪ EBITDA – For earlier stage SaaS platforms, EBITDA is often highly
negative and irrelevant if growth is exceedingly fast at the top-line
level
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
6.95x
6.07x
25.7%
36.1%
0%
10%
20%
30%
40%
0.00x
2.00x
4.00x
6.00x
8.00x
+ CFO + CFO (-) CFO (-) CFO
Median EV/Rev Multiple Median Growth Rate
9. 9
KEY OBSERVATIONS
RELEVANT TRANSACTIONS
BACK-OFFICE
TRADING & PRECEDENT MULTIPLES
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
Back-Office SaaS includes the following company tickers: WK, WIX, NTNX, BL, OKTA, WDAY, MODN.
▪ Currently, the Back-Office SaaS companies in the index are trading at
8.4x EV/Revenue, growing at an average of 39% YoY (year-over-
year) and averaging a gross margin of 69%
▪ Workday continues to be one of the best performing SaaS companies
and continues to trade at a market-leading level
▪ Despite a slight decrease from 3Q 2017 to 4Q 2017, trading
multiples returned to all-time highs in 1Q 2018
▪ The ability to easily grow back-office software companies organically
through increased customer acquisition investment, as well as
inorganically through add-on acquisitions, makes high-growth
achievable and sustainable even at scale
BACK-OFFICE SAAS
5.4x
6.3x
5.9x
6.5x
7.6x 7.6x
7.0x
8.4x
67% 67% 68% 69% 68% 68% 69% 69%
32%
30%
33%
36%
50%
48%
42%
39%
20%
30%
40%
50%
60%
70%
80%
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
EV/Rev Gross Margin YoY Growth
Date
Announced Target Acquirer Deal Size
EV / Rev
Multiple
02/26/18 Intermedix R1 RCM $459.8 2.38x
12/05/17 TSheets.com Intuit $340.0 8.50x
11/17/17 Qvidian Upland Software $50.0 2.56x
08/03/17 Intacct Sage Group $850.0 12.69x
Average EV/Rev Multiple over last five years: 6.00x
10. 10
RELEVANT TRANSACTIONS
COMMUNICATION & COLLABORATION
TRADING & PRECEDENT MULTIPLES
▪ Currently, the Communication & Collaboration SaaS businesses in
the index are trading at 8.6x EV/Revenue, growing revenue at an
average of 45% YoY and averaging a gross margin of 68%
▪ Following its IPO, Dropbox’s share price nearly 10% within its first
week of trading as a public company, displaying investor appetite for
SaaS companies
− Dropbox was one of the biggest SaaS IPOs in the past year and
its performance is being closely monitored given its potential
implications in public and private SaaS valuations
▪ Groups like LogMeIn continue to show extreme 100+% YoY
growth but are correspondingly trading below market at 4.90x
revenue as a result of decreased revenue expectations in 2019
COMMUNICATION & COLLABORATION SAAS
KEY OBSERVATIONS
5.6x
6.6x
6.1x
7.3x 7.5x
7.7x 7.8x
8.6x66% 65% 65% 66% 66% 67% 67%
68%
33%
32% 33%
36%
41%
48%
51%
45%
20%
30%
40%
50%
60%
70%
80%
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
EV/Rev Gross Margin YoY Growth
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
Communications & Collaboration SaaS include the following company tickers: JCOM, RNG, EVBG, TWLO, BOX, APPN, TEAM, DBX.
Date
Announced Target Acquirer Deal Size
EV / Rev
Multiple
02/08/18 Escher Group Hanover Investors $49.4 4.72x
06/12/17 Jive Software Aurea Software $462.2 1.72x
04/17/17 Eliza Hms Holdings $172.1 2.87x
01/19/17 IntraLinks Synchronoss Technologies $773.1 2.66x
Average EV/Rev Multiple over last five years: 5.85x
11. 11
RELEVANT TRANSACTIONS
CUSTOMER RELATIONS
TRADING & PRECEDENT MULTIPLES
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
Customer Relations SaaS include the following company tickers: CRM, ZEN, LPSN, HUBS, FIVN, BLKB, YEXT, MB, VEEV.
▪ Currently, the Customer Relations SaaS businesses in the index are
trading at 8.8x EV/Revenue, growing revenue at an average of 27%
YoY and averaging a gross margin of 71%
▪ In 1Q 2018, Customer Relations SaaS saw a large increase in revenue
multiples from 4Q 2017, an echo of changes in revenue multiples 4Q
2016 to 1Q 2017
- This seasonal fluctuation is most likely a change in market
sentiment following major 4Q 2017 earnings beats by Salesforce,
Zendesk and HubSpot
▪ Within the vertical, top-line growth continues to remain important
and many of the smaller players are expanding rapidly to try to
compete with the entrenched players like Salesforce
CUSTOMER RELATIONS SAAS
KEY OBSERVATIONS
6.0x
6.8x
5.6x
6.7x
7.3x 7.4x 7.4x
8.8x67% 68% 69% 70% 70% 70% 71% 71%
32% 31% 29% 29% 28% 29%
26% 27%
20%
30%
40%
50%
60%
70%
80%
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
EV/Rev Gross Margin YoY Growth
Date
Announced Target Acquirer Deal Size
EV / Rev
Multiple
02/05/18 LiquidHub Capgemini $494.4 1.83x
10/02/17 Velocify Accesso Technology $81.0 6.38x
07/12/17 The Experience Engine BICS $230.0 2.30x
04/25/17 TeleSign Dun & Bradstreet $150.0 2.50x
Average EV/Rev Multiple over last five years: 6.82x
12. 12
RELEVANT TRANSACTIONS
DATA & ANALYTICS
TRADING & PRECEDENT MULTIPLES
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
Data & Analytics SaaS include the following company tickers: NEWR, CLDR, TLND, SPLK, AYX, DATA, MDSO, RP, TTD, MDB.
▪ Currently, the Data & Analytics SaaS businesses in the index are
trading at 9.4x EV/Revenue, growing revenue at an average of 28%
YoY and averaging a gross margin of 75%
▪ Data & Analytics was one of the most active SaaS verticals in 1Q
2018, mostly notably Marlin Equity Partner’s public-to-private
acquisition of BazaarVoice
▪ Over the last couple years, this vertical has been highly volatile:
- Key drivers include Tableau substantially missing top-line growth
numbers in early 2016, leading market analysts to question the
value of non-recurring revenue with players successfully
transitioning to the SaaS model
- Erased 50-60% of value in a week
- Two years later, shares have returned to 1Q pre-crash levels
DATA & ANALYTICS SAAS
KEY OBSERVATIONS
5.0x
5.9x
4.8x
5.8x
6.5x
6.9x
7.2x
9.4x73% 73% 73% 74% 74% 74% 74% 75%
37%
34%
38%
43%
42%
44%
37%
28%
20%
30%
40%
50%
60%
70%
80%
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
EV/Rev Gross Margin YoY Growth
Date
Announced Target Acquirer Deal Size
EV / Rev
Multiple
03/22/18 Cynosure Zensar Technologies $33.3 1.65x
02/27/18 Openwave Mobility Enea $89.9 3.33x
02/26/18 Intermedix R1 RCM $459.8 2.38x
02/14/18 Utopus Insights Vestas Wind Systems $100.2 10.00x
Average EV/Rev Multiple over last five years: 6.83x
13. 13
RELEVANT TRANSACTIONS
FINTECH, E-COMMERCE & MARKETPLACE
TRADING & PRECEDENT MULTIPLES
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
FinTech, E-Commerce & Marketplace SaaS include the following company tickers: ECOM, SHOP, TRUE, EBIX, QTWO, COUP, ELLI.
▪ Currently, the FinTech, E-Commerce & Marketplace SaaS businesses
in the index are trading at 7.8x EV/Revenue, growing revenue at an
average of 27% YoY and averaging a gross margin of 67%
▪ Despite volatility in growth rates over the LTM, public FinTech
companies experienced valuation expansion as a result of recent
FinTech acquisitions occurring at high multiples
▪ SaaS FinTech companies have a different look than the broader
ecosystem; the SaaS model works best for E-Commerce, marketplace
and financial enterprise software companies and not for the
payments, P2P loans, wealth-advisor and neobank applications that
tend to dominate FinTech discussions and private raises
FINTECH, E-COMMERCE & MARKETPLACE SAAS
KEY OBSERVATIONS
5.4x
6.0x
5.7x
6.6x
7.1x 7.3x
6.5x
7.8x66% 66% 66% 67% 67% 67% 66%
67%
37% 34%
30%
32% 33%
27%
25%
27%
20%
30%
40%
50%
60%
70%
80%
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
EV/Rev Gross Margin YoY Growth
Date
Announced Target Acquirer Deal Size
EV / Rev
Multiple
03/06/18 CommerceHub GTCR, Sycamore Partners $1,075.7 9.72x
02/14/18 Dealer Inspire Cars.com $165.0 4.02x
02/01/18 BazaarVoice Marlin Equity Partners $521.0 2.14x
12/21/17 Ensenta Jack Henry and Associates $130.0 4.81x
Average EV/Rev Multiple over last five years: 7.97x
14. 14
RELEVANT TRANSACTIONS
HCM
TRADING & PRECEDENT MULTIPLES
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
HCM SaaS include the following company tickers: WDAY, ULTI, PAYC, CSOD, INST, PCTY, NOW.
▪ Currently, the HCM SaaS businesses in the index are trading at 8.9x
EV/Revenue, growing revenue at an average of 29% YoY and
averaging a gross margin of 70%
▪ HCM continues to be one of the highest valued verticals in SaaS,
with large players like SerivceNow continuing to hit all-time high
valuations
▪ Valuation premiums reflect strong value proposition offered by
HCM as a cloud service
- Provide interface similar to social-media and supplies the data
storage and processing power capacity needed for advanced HR
ML and AI to run effectively
- Immense strategic and private equity interest adds a premium to
multiples by providing an apparent price floor
HUMAN CAPITAL MANAGEMENT SAAS
KEY OBSERVATIONS
7.7x
8.2x
6.1x
7.2x
7.9x 8.1x
7.7x
8.9x68% 68% 68% 68% 68% 69% 69% 70%
41%
39%
35%
32%
30% 29% 28% 29%
20%
30%
40%
50%
60%
70%
80%
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
10.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
EV/Rev Gross Margin YoY Growth
Date
Announced Target Acquirer Deal Size
EV / Rev
Multiple
01/30/18 CallidusCloud SAP $2,400.0 8.89x
07/31/17 CareerBuilder Apollo $500.0 3.09x
07/31/17 Xactly Vista Equity Partners $522.5 5.47x
05/26/17 Evolution HCM Asure Software $55.0 3.93x
Average EV/Rev Multiple over last five years: 6.20x
15. 15
RELEVANT TRANSACTIONS
HEALTHTECH
TRADING & PRECEDENT MULTIPLES
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
HealthTech SaaS include the following company tickers: BNFT, VEEV, HSTM, ATHN, MDSO, TRHC, WAGE, CSLT.
▪ Currently, the HealthTech SaaS businesses in the index are trading at
5.2x EV/Revenue, growing revenue at an average of 20% YoY and
averaging a gross margin of 58%
▪ Lower growth rates, pricing pressure and slim gross margins have left
HealthTech as one of the lowest-valued sectors in SaaS
▪ Low growth rates are a result of a complex combination of factors
including longer sales cycles, heavy regulation and slow adoption
▪ Public markets have attributed the highest valuations to HealthTech
companies that deal with the collection and consolidation of
information/data
▪ However, the highest transaction multiples have been seen in
emerging HealthTech trends, including diagnostics, patient
monitoring and telehealth
HEALTHCARE TECHNOLOGY SAAS
KEY OBSERVATIONS
5.4x 5.4x
4.9x 5.0x
5.8x
5.4x
4.8x
5.2x
56% 56% 58% 58% 58% 58% 58% 58%
24% 23% 23% 23% 24% 24% 22% 20%
10%
20%
30%
40%
50%
60%
70%
80%
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
EV/Rev Gross Margin YoY Growth
Date
Announced Target Acquirer Deal Size
EV / Rev
Multiple
04/17/17 Eliza Hms Holdings $172.1 2.87x
04/14/17 Entrada NextGen Healthcare $34.0 2.83x
01/24/17 CoverMyMeds McKesson $1,400.3 13.97x
08/08/16 Morrisey Associates Echo $48.0 3.75x
Average EV/Rev Multiple over last five years: 6.00x
16. 16
RELEVANT TRANSACTIONS
IT
TRADING & PRECEDENT MULTIPLES
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
IT SaaS include the following company tickers: HDP, APTI, SPLK.
(1) 2Q16 and 3Q16 YoY Growth rates are outliers and are not shown.
▪ IT SaaS encompasses companies with SaaS products for connecting
and monitoring applications, data and devices
▪ The number of public IT SaaS companies has been increasing in the
public and private markets, as legacy IT companies spin-off in-house
software solutions into standalone products
▪ This trend has been increasingly popular as IT consulting companies
look to separate the one-time, project-based revenue lines and higher
value recurring revenue lines in order to take advantage of embedded
value/multiple arbitrage
▪ Salesforce’s acquisition of Mulesoft in March 2018 represented one
of the largest SaaS transactions in the last 12 months
− Salesforce paid a 36% premium relative to Mulesoft’s trading
value prior to the announcement of the transaction
INFORMATION TECHNOLOGY SAAS
KEY OBSERVATIONS
5.9x
5.3x
4.4x
6.5x 6.6x 6.3x
7.1x 7.0x
69% 69% 70% 71% 71% 72% 72% 73%
40%
51%
53% 57%
36%
30%
20%
30%
40%
50%
60%
70%
80%
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
EV/Rev Gross Margin YoY Growth(1)
Date
Announced Target Acquirer Deal Size
EV / Rev
Multiple
03/22/18 Cynosure Zensar Technologies $33.3 1.65x
03/20/18 MuleSoft Salesforce $6,500.0 21.24x
12/12/17 Black Duck Synopsys $547.1 7.29x
11/27/16 Appirio Wipro $499.9 2.50x
Average EV/Rev Multiple over last five years: 5.49x
17. 17
RELEVANT TRANSACTIONS
SCM / ERP
TRADING & PRECEDENT MULTIPLES
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
SCM / ERP SaaS include the following company tickers: KXS, AMBR, SPSC, APPN, UPLD, MODN.
▪ Currently, the SCM/ERP SaaS businesses in the index are trading at
5.9x EV/Revenue, growing revenue at an average of 22% YoY and
averaging a gross margin of 62%
▪ The SCM / ERP space has been particularly active for private
transactions within the past few quarters
▪ Workforce management solutions have been acquired by larger
strategics who are able to leverage the product offering to cross-sell
existing e-commerce, BI and CRM solutions
▪ Vertically-focused SCM and ERP companies have gained the most
traction, as legacy industries like manufacturing and transportation
have begun to aggressively incorporate software
▪ As one of the most mature sub-vertical in SaaS, the level of
profitability has become more important as average top-line growth
rates have fallen into the mid teens
SCM & ENTERPRISE RESOURCE PLANNING SAAS
KEY OBSERVATIONS
4.3x
5.0x
4.4x
4.9x
5.8x
6.1x 6.0x 5.9x
59% 59% 60% 61% 61% 62% 62% 62%
16% 15% 16% 17%
19%
21% 20%
22%
10%
20%
30%
40%
50%
60%
70%
80%
3.0x
3.5x
4.0x
4.5x
5.0x
5.5x
6.0x
6.5x
7.0x
7.5x
8.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
EV/Rev Gross Margin YoY Growth
Date
Announced Target Acquirer Deal Size
EV / Rev
Multiple
03/06/18 CommerceHub GTCR, Sycamore Partners $1,075.7 9.72x
12/28/17 BravoSolution Jaggaer, Accel-KKR $217.8 2.75x
11/30/17 Power Advocate Verisk Analytics $280.0 7.78x
11/17/17 Exa Dassault Systemes $347.5 4.79x
Average EV/Rev Multiple over last five years: 5.69x
18. 18
RELEVANT TRANSACTIONS
SECURITY
TRADING & PRECEDENT MULTIPLES
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
Security SaaS include the following company tickers: ALRM, VRNS, ZIXI, PFPT, FEYE, QLYS, MIME, MOBL.
▪ Currently, the Security SaaS businesses in the index are trading at 6.1x
EV/Revenue, growing revenue at an average of 21% YoY and
averaging a gross margin of 76%
▪ Security software companies are often divided into companies with
legacy products and companies with disruptive solutions
▪ Legacy products have lower growth rates and significantly lower
valuations than companies with disruptive solutions
▪ This trend holds for acquisitions; companies with legacy products like
Sotera, which provides SaaS-based security solutions for law-
enforcement, transact at low single-digit multiple, while companies like
Cloudlock transact at double-digit multiples as legacy players like Cisco
seek to acquire disruptive technologies that expand and enhance their
product offerings
SECURITY SAAS
KEY OBSERVATIONS
4.0x
4.8x
4.2x
4.8x
5.4x 5.5x 5.3x
6.1x
75% 75% 75% 75% 76% 76% 76% 76%
24% 24% 22% 22% 22% 21% 21% 21%
10%
20%
30%
40%
50%
60%
70%
80%
2.0x
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
EV/Rev Gross Margin YoY Growth
Date
Announced Target Acquirer Deal Size
EV / Rev
Multiple
02/26/18 Cofense BlackRock, Pamplona $400.0 4.00x
02/12/18 Barracuda Networks Thoma Bravo $1,600.0 3.97x
12/27/17 Gigamon Elliott Management $1,456.4 4.81x
12/12/17 Black Duck Synopsys $547.1 7.29x
Average EV/Rev Multiple over last five years: 7.20x
19. 19
RELEVANT TRANSACTIONS
VERTICALLY-FOCUSED
TRADING & PRECEDENT MULTIPLES
▪ Currently, the vertically-focused SaaS businesses in the index are
trading at 7.4x EV/Revenue, growing revenue at an average of 25%
YoY and averaging a gross margin of 63%
▪ Vertically-focused SaaS companies trade at a wide range of multiples,
usually based on the size of their total addressable market (TAM),
sales cycle, customer acquisition costs and ACV
▪ Growth rates for vertically-focused SaaS are usually lower given a
limited TAM, but high retention rates lift multiples to in-line with
SaaS Index averages
▪ Of the transactions analyzed by Leonis, vertically-focused
marketplace and reservation companies transacted at the highest
multiples of all vertically-focused SaaS sub-sectors in 2017
VERTICALLY-FOCUSED SAAS
KEY OBSERVATIONS
6.0x
6.4x
5.9x
6.5x
7.1x 7.0x
6.8x
7.4x
62% 62% 63% 63% 63% 63% 63% 63%
28% 27% 27% 27% 27% 26%
25% 25%
20%
25%
30%
35%
40%
45%
50%
55%
60%
65%
70%
3.0x
4.0x
5.0x
6.0x
7.0x
8.0x
9.0x
2Q16 3Q16 4Q16 1Q17 2Q17 3Q17 4Q17 1Q18
EV/Rev Gross Margin YoY Growth
Source: Pitchbook and Leonis Proprietary Transaction Database.
Note: Market Data as of 3/31/2018.
Vertically-Focused SaaS include the following company tickers: VEEV, MDSO, ATHN, TWOU, APPF, RP, ELLI, WAGE, HSTM, CSLT, EBIX, MB.
Date
Announced Target Acquirer Deal Size
EV / Rev
Multiple
03/06/18 CommerceHub GTCR, Sycamore Partners $1,075.7 9.72x
02/14/18 Dealer Inspire Cars.com $165.0 4.02x
02/14/18 Utopus Insights Vestas Wind Systems $100.2 10.00x
02/02/18 e-Builder Trimble $500.0 8.00x
Average EV/Rev Multiple over last five years: 5.20x