Software Equity Group’s April SaaS Index Update is an overview on the performance of public SaaS Company stocks over the past month. The SEG SaaS Index is comprised of 100 publicly traded companies that primarily offer solutions via the cloud and/or through a subscription or transaction-based model.
View the full report on our research page: SEG SaaS Index Update: April 2020. We have highlighted some key points from the report below:
YTD Stock Market Performance
Public SaaS companies have performed remarkably well in the context of the public markets, leading the recovery of equities through the end of April and into May. The SEG SaaS Index has outperformed broader indices, including the S&P 500, NASDAQ, and Dow Jones. This is very encouraging as it is the first time SaaS companies and the SaaS model are being tested in the marketplace. See slide 8 for more.
SEG SaaS Index by Size
Smaller SaaS companies ($0M-$250M in revenue) are recovering more slowly than their larger counterparts. In addition, Mega SaaS companies have recovered all losses (0%), with Large and Mid-sized companies close behind (-0.3% and -1.0%, respectively). See slide 9 for more.
SEG SaaS Index Biggest Gains & Declines YTD
Almost half the SEG SaaS Index posted positive YTD returns. This is a considerable improvement from only nine companies with positive returns just last month. Companies with the most gains YTD include Zoom (98.7%), Livongo (59.7%), and Shopify (59.0%). Not surprisingly, four of the top ten companies in the Index were from the Communications and Collaboration segment. This category is experiencing major tailwinds from COVID-19.
Meanwhile, companies slow to recover from COVID-19 include Eventbrite (-54.8%), Benefitfocus (-50.6%), and TrueCar (-46.1%). See slides 11 & 12 for more.
For more information, the full report can be on our research page: SEG SaaS Index Update: April 2020.