Public Software as a Service (SaaS) Financial Performance: By Product Category

This excerpt is from our complimentary Q2 2012 Software Industry Financial Report which can be downloaded here:

The SEG SaaS Index, consisting of 27 pure play SaaS providers, now has sufficient critical mass for us to track four distinct subcategories: CRM & Marketing, ERP & Supply Chain, Workforce Management and Vertically Focused providers (Figure 17).

Vertically Focused SaaS providers posted a 34.4% TTM revenue growth at the close of 2Q12, the highest among all categories. DealerTrack, a provider of solutions to the automotive industry, led the pack with a TTM revenue growth rate of 39.2%.

Vertically Focused SaaS providers achieved EBITDA margins of 15.3% in 2Q12, 55% higher than the SaaS sector median of 9.9%. Ebix, a provider of e-commerce solutions to the insurance industry, earned top honors within the category with EBITDA margins of 43.6%.

SaaS companies comprising the ERP & Supply Chain product category of our SaaS Index achieved the largest YoY jump in median TTM revenue growth, driven by a five consecutive quarters of accelerating growth. SaaS companies in this category are benefitting from growing enterprise and SMB acceptance of cloud-based, remotely hosted applications.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s