Upload
others
View
6
Download
0
Embed Size (px)
Citation preview
Performance thru
Benchmarking
Lauren Kelley
www.opexengine.com
OPEXEngine Mission
Improving mid-market business performance
by automating on-demand financial and
operational benchmarking
Deliver fast, easy to use financial
comparisons
Proprietary Peer Group Builder
Accessible anywhere, anytime
Automate tedious manual research
Incorporate best practice financial analysis
2
About OPEXEngine • Founded 2006, partnered with the SIIA, conduct annual confidential
Software and SaaS Benchmarking
• Partner with EDGR (RR Donnelly) for the On-Demand Financial Insights
Reports
Why Benchmark?
“We found OPEXEngine’s reports to be square on with what
we needed and a critical source of data for our management
team. High quality data – like OPEXEngine – is rare and worth
paying for.” Jim Lejeal, CFO, Rally Software
www.opexengine.com
For budgeting and planning
In setting internal targets
For board meetings
For fundraising and investors
Because good quality financial comparisons drive informed decision-
making and top performance
Who are your peers? Factors to Consider
Early stage or late stage
Are you SalesForce or
$10M venture backed?
Growth mode or profitability
goals?
Sales and marketing model
www.opexengine.com
Factors that are
less important
Same product
Same customers
“The great thing about the OPEXEngine data is that there are several peer groups to look at. You can look at metrics for private vs public companies, metrics for companies in your revenue band, or with similar headcount. So many other metric reports are too focused on public companies. Public company data just isn’t that relevant to us.” Mike Morgan, CFO, Bomgar Corporation
Early to Growth Stage Customer Growth and Employees
www.opexengine.com
Source: 2012 OPEXEngine Software and SaaS Benchmarking
Saas Companies By
Revenue: Less Than
$10M
Saas Companies By
Revenue: $10M -
$20M
Recognized
Revenue: $20M -
$40M
Average Recognized Revenue $3,894,367 $13,373,688 $26,788,202
2011 over 2010 YTY Revenue Growth
Rate 33.60% 35.90% 46.60%
Customer Metrics
Number of Customers at end of 2011 125 900 2,109
Net percent change in the number of
customers at the end of 2011 from 2010 72.50% 24.10% 28.90%
EMPLOYEE PRODUCTIVITY
Number of Employees (FTEs) 31.3 75 188.5
Early to Growth Stage Cost and Expense Detail
www.opexengine.com
Source: 2012 OPEXEngine Software and SaaS Benchmarking
Saas Companies By
Revenue: Less Than
$10M
Saas Companies By
Revenue: $10M -
$20M
Recognized
Revenue: $20M -
$40M
Average Recognized Revenue $3,894,367 $13,373,688 $26,788,202
Operating Income -158.80% 1.70% -23.90%
Cost and Expense Detail (as a % of total
recognized revenue)
Total cost of revenue (cost of products
+ cost of services) 60.40% 28.90% 33.40%
Research & Development 67.10% 19.60% 22.00%
Sales 60.00% 25.80% 33.90%
Marketing 27.80% 13.00% 16.50%
Private SaaS Regional
Compensation Differences
www.opexengine.com
Source: 2012 OPEXEngine Software Benchmarking Industry Report
Financials for Recent IPOs
www.opexengine.com
Source: OPEXEngine On-Demand Financial Insights Reports
OPEXEngine Analytics FINANCIAL INSIGHTS REPORT
Stock Ticker BCOV BV CSOD JIVE Average
Company BRIGHTCOVE INC BAZAARVOICE INCCORNERSTONE ONDEMAND INCJIVE SOFTWARE, INC.
Reporting Period Q2 2012 Q1 2013 Q2 2012 Q2 2012
($000s)
Market Cap (diluted, priced as of the period end date) $417,294 $967,991 $1,184,857 $1,299,785 $967,482
Revenue to Market Cap Multiplier 4.83 6.79 11.09 12.06 8.69
Earnings Per Share (diluted) -0.16 -0.30 -0.17 -0.19 -0.21
Price to Earnings Ratio -6.12 -16.67 -158.73 -21.86 -50.85
Mean Analyst Earnings Estimate (Current Year) -0.46 -0.96 -0.46 -0.66 -0.64
Recognized Revenue $21,620 $35,662 $26,718 $26,950 $27,738
Annual Revenue Growth 48.3% 62.6% 72.3% 56.8% 60.0%
Recognized Revenue + Change in Deferred Revenue $28,093 $52,679 $49,347 $52,449 $45,642
Short-Term Deferred Revenue (This Period) $15,970 $46,450 $57,462 $71,462 $47,836
Deferred Revenue as a % of Recognized Revenue 73.9% 130.3% 215.1% 265.2% 171.1%
Mean Analyst Revenue Estimate (Current Year) $105,718 $193,960 $165,902 $153,081 $154,665
Cost of Goods and Services Sold as a % of Revenue 29.8% 35.4% 29.5% 40.5% 33.8%
S&M Expense as a % of Recognized Revenue 45.1% 43.0% 65.2% 54.1% 51.8%
G&A Expense as a % of Recognized Revenue 19.8% 45.4% 21.7% 13.9% 25.2%
SG&A Expense as a % of Recognized Revenue 64.8% 88.4% 86.9% 68.0% 77.0%
R&D Expense as a % of Recognized Revenue 21.1% 21.0% 12.8% 33.9% 22.2%
Total Operating Expense as % of Total Revenue* 67.9% 77.6% 54.5% 52.4% 63.1%
VALUATION COMPARISONS
REVENUE COMPARISONS
COST AND EXPENSE COMPARISONS
SalesForce Valuation and
Revenue Growth since IPO
www.opexengine.com
Source: OPEXEngine On-Demand Financial Insights Reports
OPEXEngine Analytics FINANCIAL INSIGHTS REPORT
Stock Ticker CRM CRM CRM CRM CRM Average
Company SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC
Reporting Period Full Year 2012 Full Year 2010 Full Year 2008 Full Year 2006 Full Year 2004
Period Start Date and End Date 02/01/2011-01/31/2012 02/01/2009-01/31/2010 02/01/2007-01/31/2008 02/01/2005-01/31/2006 02/01/2003-01/31/2004
($000s)
Market Cap (diluted, priced as of the period end date) $15,803,274 $8,141,645 $6,354,926 $4,874,154 na $8,793,500
Revenue to Market Cap Multiplier 6.97 6.24 8.49 15.73 na 9.36
Earnings Per Share (diluted) -0.09 0.65 0.16 0.27 0.12 0.22
Price to Earnings Ratio -1297.78 97.77 324.44 152.04 na -180.88
Mean Analyst Earnings Estimate (Current Year) -0.09 -0.09 -0.09 -0.09 -0.09 -0.09
Recognized Revenue $2,266,539 $1,305,583 $748,700 $309,857 $96,023 $945,340
Annual Revenue Growth 36.8% 21.3% 50.6% 75.7% 88.3% 54.5%
3 Year Revenue CAGR 28.2% 38.0% 61.9% 82.5% na 52.6%
Recognized Revenue + Change in Deferred Revenue $2,644,922 $1,411,997 $937,266 $383,132 $126,529 $1,100,769
Short-Term Deferred Revenue (This Period) $1,291,622 $690,177 $468,821 $169,175 $49,677 $533,894
Deferred Revenue as a % of Recognized Revenue 57.0% 52.9% 62.6% 54.6% 51.7% 55.8%
Mean Analyst Revenue Estimate (Current Year) $3,827,694 $3,827,694 $3,827,694 $3,827,694 $3,827,694 $3,827,694
VALUATION COMPARISONS
REVENUE COMPARISONS
SalesForce Cost, Expense and
Profitability over Time
www.opexengine.com
Source: OPEXEngine On-Demand Financial Insights Reports
OPEXEngine Analytics FINANCIAL INSIGHTS REPORT
Stock Ticker CRM CRM CRM CRM CRM Average
Company SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC SALESFORCE COM INC
Reporting Period Full Year 2012 Full Year 2010 Full Year 2008 Full Year 2006 Full Year 2004
Period Start Date and End Date 02/01/2011-01/31/2012 02/01/2009-01/31/2010 02/01/2007-01/31/2008 02/01/2005-01/31/2006 02/01/2003-01/31/2004
($000s)
Cost of Goods and Services Sold as a % of Revenue 21.6% 19.8% 22.9% 22.3% 18.0% 20.9%
S&M Expense as a % of Recognized Revenue 51.6% 46.4% 50.3% 48.3% 56.9% 50.7%
G&A Expense as a % of Recognized Revenue 15.3% 15.0% 15.6% 15.5% 17.6% 15.8%
SG&A Expense as a % of Recognized Revenue 66.9% 61.3% 65.8% 63.8% 74.5% 66.5%
R&D Expense as a % of Recognized Revenue 13.0% 10.1% 8.5% 7.5% 7.3% 9.3%
Total Operating Expense as % of Total Revenue* 68.5% 66.0% 59.4% 57.6% 59.3% 62.2%
Gross Profit $1,777,653 $1,047,658 $577,109 $240,731 $78,750 $744,380
Gross Margin 78.4% 80.2% 77.1% 77.7% 82.0% 79.1%
Total Operating Income/Loss ($35,085) $115,272 $20,309 $20,102 $3,718 $24,863
Total Operating Profit Margin -1.6% 8.8% 2.7% 6.5% 3.9% 4.1%
Total Pre-Tax Income/Loss ($33,317) $142,381 $46,213 $28,198 $4,239 $37,543
Total Pre-Tax Margin -1.5% 10.9% 6.2% 9.1% 4.4% 5.8%
Total Net Income/Loss ($11,572) $80,719 $18,356 $28,474 $3,514 $23,898
Total Net Margin -0.5% 6.2% 2.5% 9.2% 3.7% 4.2%
EBITDA $239,743 $233,068 $86,723 $40,735 $14,908 $123,035
After Tax Return On Assets -0.3% 3.3% 1.7% 6.6% 4.0% 3.1%
COST AND EXPENSE COMPARISONS
PROFITABILITY ANALYSIS COMPARISONS
www.opexengine.com
Critical SaaS Metrics Tracked
“The OPEXEngine
benchmarking report
is a key element of
our planning process,
it helps us set the right
targets for our cost
structure 2 to 3 years
out.”
Stephane Panier,
CFO, GoodData
KEY SAAS SPECIFIC METRICS
Total Annual Recurring Revenue (ARR)
Change in Annual Recurring Revenue from 2010 to 2011
Contracted Monthly Recurring Revenue (CMRR) as of December 31 2011
Change/Growth Rate in Contracted Monthly Recurring Revenue from Dec 31 '10 to Dec 31 '11
Customer Acquisition Costs (CAC) per Customer
Average Cost of Service (platform, operations, customer support and maintenance) per User
Average Recurring Revenue per Customer
Customer Lifetime Value (CLV)
Customer Metrics
Number of Customers at end of 2011
Net percent change in the number of customers at the end of 2011 from 2010
Average Monthly Revenue per Customer for Dec 2011
Recognized Revenue per Customer
Average Customer's Total Lifetime Revenue
Operating Expense per Customer
Customer Acquisition Costs (CAC) per Customer
Number of Channel Partners
Percentage of customers that are $1 Billion + Enterprises
Churn Rates
Customer Renewal Rate During Year (As a % of Customers Up for Renewal)
Dollar Renewal Rate During Year (As a % of Total $ Value Up for Renewal)
Seat renewal rate - percentage of seats renewed that were up for renewal in 2011
Payment Terms
If upfront payment is typically required from customers, how many months payment do your charge?
Average Term of a Customer Contract in Months
HOSTING EXPENSES:
Total hosting expense (As a % of Total Recognized Revenue)
Number of datacenters
Hosting expense per data center
Best Practices Use peer benchmarks to help define performance targets
Incorporate benchmarking data up front in budgeting and
planning process and review against it
monthly/quarterly/annually
Communicate benchmarks regularly to all executive
departments and with Board to drive Executive Team
ownership and collaboration and build credibility with the
Board
“We’ve participated in OPEXEngine’s confidential software benchmarking for the
past four years and find the data highly useful. As a fast growth, mid-sized, public
software company, we are data-driven in our management and planning
processes and OPEXEngine’s software benchmarking is a critical information
source for detailed financial and operating metrics.” Ralph Bryant, VP Finance,
RightNow (RNOW)
Business, like sports, is about constantly driving performance through
benchmarking your performance against peers and leaders
2012 Olympics, London
Thank You
617-674-4218
www.opexengine.com
www.opexengine.com