American SaaS company From Anson securities
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The following is the American SaaS company From Anson securities recommended by recordtrend.com. And this article belongs to the classification: SAAS, cloud computing, Brokerage Report.
In this paper, we analyze 8 SaaS companies in American stock market. We divide SaaS companies into two categories: Adobe, Autodesk, sap, Oracle, and native SaaS companies: salesforce, veeva, workday, servicenow.
For cloud companies, arr (annualized recycling revenue) is a key indicator. Transformation to cloud is a long process, which requires changes at the organizational structure level, and usually requires the company’s flagship products to try to transform to cloud. Generally speaking, products with weak bargaining power of end users are easy to be transferred to cloud, and foreground applications are easier to cloud than background services. There are many kinds of operation indicators of cloud companies, but these indicators are all processes. They should be reflected in the profit statement finally, that is, arr is the result. According to our observation, the higher the ratio of arr to income and the higher the growth rate of arr, the easier it is to enjoy overvalued value. From the perspective of DCF, the key of arr is that it reduces the uncertainty of the company’s performance, and then reduces the WACC, thus increasing the results of DCF, and finally improving the company’s valuation level.
For native SaaS companies, they need to focus on their ecosystem. Many people believe that the advantage of SaaS is that it doesn’t need to be implemented. However, this understanding is one-sided: judging from the development process of these four companies, the fate of SaaS company is closely related to the implementers. Each of the four SaaS giants attaches great importance to implementers, and their positioning is “partners”. Therefore, to judge whether a SaaS manufacturer is excellent or not, we need to focus on its ISV (independent software vendor) and implementers, because these industry people are more sensitive and accurate than outsiders. In terms of valuation, companies with excellent financial indicators (such as veeva) can enjoy overvalued value, companies occupying better track can enjoy overvalued value, companies with high income growth rate (such as workday) can enjoy overvalued value, and companies with rapidly increasing subscription share in revenue can also enjoy overvalued value.
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