SIIA/OPEXEngine Report on U.S. Software Industry Shows Strong Revenue Growth & Renewed Focus on Investment

Annual Study Finds Private Software/SaaS Firms Making Highest Revenue Gains Since ’08

 Washington, D.C. (July 17, 2014) – The private U.S. software industry is experiencing its biggest revenue gains since the recession, and both private and public companies are renewing their focus on investment in order to gear up for further growth, according to a study announced today by the Software & Information Industry Association (SIIA), the principal trade association for the software and digital content industries.

The 2014 Software & SaaS Financial Benchmarking Report is produced by SIIA partner OPEXEngine, the leading aggregator of financial and operating benchmarks for small- and mid-sized software companies. To complete this eighth annual report, OPEXEngine surveyed several hundred private and public U.S. firms with revenues between $1 million and $450 million, with a focus on Software-as-a-Service (SaaS) metrics.

The report, which benchmarks 2013 financials and operating metrics, finds that median revenue for private software firms rose almost 42 percent year over year – the highest percentage increase since the 2008 recession, and almost 40 percent higher than last year’s revenue growth rate of 30.5 percent. Revenue for all public companies included in the survey rose an average of 18 percent in 2013, while revenue growth for public SaaS companies averaged almost 30 percent.

This year’s study also indicates that private and public firms – encouraged by  revenue growth – felt confident about increasing spending over current revenues, and were investing in operations and hiring to drive further growth.  See table below for more detail. 

Private Companies

Public Companies

 

 

 

 

FY09

FY10

FY11

FY12

FY13

 

FY09

FY10

FY11

FY12

FY13

 

Year-over-Year Revenue Growth

 

21%

27.8%

37.4%

30.5%

41.7%

 

12%

22%

37.5%

21.9%

18.3%

 

Operating Income/Loss

 

-20.4%

-13.2%

-9.6%

-4.1%

-13.0%

 

11.5%

6.1%

6.1%

4.2%

-8.2%

 

                             

Further demonstrating this focus on investment, both private and public companies have budgeted to add jobs this year. Private firms plan to increase employee headcount by 26 percent (a 3.5 percent increase over 2013 plans) by the end of 2014, while public companies project a nearly 27 percent gain in 2014 headcount.

 “This year’s benchmarking report of small- to -mid-sized software companies shows a significant shift in focus from profits to investment,” said Rhianna Collier, vice president of the SIIA Software Division. “While most firms were cutting back and hyper-focused on profitability in the wake of the recession, they have clearly shifted to focusing on growth.  Not only are companies experiencing strong revenue gains – they are pouring investment back into their firms and setting the stage for further growth and job creation.”

Lauren Kelley, CEO and founder of OPEXEngine, added: “In taking the pulse of small to mid-sized software companies since fiscal year 2006, we have had a unique opportunity to watch the industry respond to, and recover from, one of the most turbulent economic periods.  Over the last six years, the industry has shown increasingly strong revenue growth, driven by a dramatic rise in worldwide markets for cloud-based software. Both private and public companies in this segment of the industry are spending over revenues, signaling a renewed commitment to growth not seen since before 2008.”

 OPEXEngine also compares software firms in different geographic regions and finds that median revenue growth for private East and West Coast firms is twice that of private companies in the Central and Mountain regions. At the same time, average operating income for private firms in the Central and Mountain regions is positive (by nearly 3 percent), whereas  private firms based on the East and West Coast had operating losses of median 34 percent and  27 percent, respectively.

“While the rise of remote, cloud-based software has allowed for the establishment of more firms outside major tech centers, these companies do not yet have the same access to venture funding as their East and West coast counterparts,” said Kelley. “Venture funding is concentrated on the coasts – in start-ups and in massive growth investments to scale companies, acquire customers and drive revenue growth. At the same time, we are seeing East and West Coast firms invest their revenues in future growth, while firms in the Central and Mountain regions are being managed more conservatively.”

The 2014 Software & SaaS Financial Benchmarking Report and Benchmarking Data is available for purchase at www.opexengine.com.  Members of the media may request a copy of the report by contacting Farrah Kim at farrahkim@rational360.com or 202.568.8986.

 Other key findings from the 2014 Software Benchmarking Industry Report include:

  • Median revenue growth for private East and West Coast firms is 51-53 percent, compared to an average of 25 percent for firms in the Central and Mountain regions.
  • Median sales and marketing spending for West Coast firms is highest among the regions at 65 percent of revenue. Comparatively, East coast firms spent a median of 51 percent on sales and marketing, while Central and Mountain region firms benchmark at a median 33 percent in sales and marketing.
  • West Coast private firms utilize the most venture funding, at a median of $65 million.  East Coast firms follow, accepting a median of $23 million in venture funding, while firms in the Central and Mountain region access a median of $6.8 million in venture funding.  

 The 2014 Software & SaaS Financial Benchmarking Industry Report provides extensive financial and operating metrics for U.S.-based companies with 2013 revenues of between $1 million and $450 million. Benchmarks cover key financials, including detailed expense ratios, revenue and profit metrics, geographic break-outs, employee statistics, as well as customer and sales model comparisons. The report also looks specifically at Software-as-a-Service (SaaS) vendors and breaks out all the benchmarks for smaller, private companies as well as for larger, public, companies.

 About SIIA

SIIA is the leading association representing the software and digital content industries. SIIA represents approximately 800 member companies worldwide that develop software and digital information content. SIIA provides global services in government relations, business development, corporate education and intellectual property protection to the leading companies that are setting the pace for the digital age. The SIIA Software Division provides a forum for companies developing the applications, services, infrastructure and tools that are driving the software and services industry forward. For further information, visit www.siia.net/software.

About OPEXEngine

OPEXEngine is the industry leader in delivering financial and operating benchmarks for the technology industries.  OPEXEngine’s benchmarking reports are key tools used by senior operating executives to support the budgeting, strategic planning and investment process.  In addition, OPEXEngine’s On Demand Financial Insights Reports deliver company and industry comparisons in the areas of valuations, revenues, cost and expenses, profitability, employee productivity and cash management for any US public company, created on the fly in minutes.   For further information, visit www.opexengine.com.


Public SaaS Averages – Comparing Q1 2014 to Q1 2013

Download here:  Q1 2014 to Q1 2013 SaaS Averages

Q1 2014 Operating Metrics for Public SaaS Companies Show Continued Investment in Sales and Marketing  As public companies prepare to present their numbers for Q2, or full year numbers for those companies with a fiscal year ended June 30th, we thought we’d take a look at how Q1 2014 metrics for public SaaS companies compared to Q1 2013. We took the average for about 40 public SaaS companies with revenues under $500M, using OPEXEngine’s automated peer builder to compare public company financials

Results from Q1 2014 showed:  Average SaaS Revenue to Market Cap Multiple Increased by 30%

First, we looked at the average revenue to market cap multiplier for the group, which in Q1 ’14 was 6.79 as compared to 5.21 for Q1 ’13.  The average for Q1 2014 was driven up by a few high fliers, such as Workday, ServiceNow, NetSuite and Demandware. 

Little Change in Operating Expense Ratios from Last Year Then we compared operating expense ratios for Sales and Marketing, G&A, R&D and total operating expenses. The averages for these metrics for Q1 2014 and for the same period in 2013 changed by less than a percentage for all departments except Sales and Marketing which was up in Q1 2014 slightly more at 1.5% over the same period in 2013.  Average total operating expense as a percent of revenue was up by 1.2% for Q1 2014 over the same period in 2013.

 Employee Productivity Increased 25%  Average employee productivity for the first quarter of 2014 was up to $69,000 from $55,000 for the first quarter of 2013.  

While hiring has continued at about an average of 20% increase in 2014 over 2013 for public SaaS companies, revenue growth averaging 30% has outpaced hiring.  

In traditional industries, you would normally see this dynamic reflected in improving profit metrics, but we’ll have to see by the end of the year whether SaaS companies will continue to focus on revenue growth (and customer acquisition) over driving down expenses.  If predictions about strong SaaS market growth and future market size are correct, my bet is that companies will continue to invest in Sales and Marketing at a pace with revenue growth.  

See the full set of industry averages Q1 2014 to Q1 2013 SaaS Averages

To see the financials by individual SaaS company, access instantly any public company’s financials, plus build your own peer groups, buy a subscription to OPEXEngine’s EDGR Financial Insights Reports, based on the EDGAR database of 16,000 public company filings.  Find out more here.  or ask for a demo – we’d be happy to show you how easy it is.   

OPEXEngine’s 8th annual confidential benchmarking of private and public Software and SaaS companies, conducted over the past few months, will be available shortly.  Register NOW for advance notice of availability.    



SaaS Benchmarks – The Devil’s in the Details

Tracking performance metrics like monthly recurring revenues (MRR) and contracted monthly recurring revenues (CMRR), customer acquisition costs (CAC), renewal or churn rates, and customer lifetime value rate (CLV) is critical for driving growth at successful SaaS companies.  None of these metrics are GAAP metrics, though, and there is no auditing of the numbers.  Many companies do their best to follow definitions for these metrics from research on the web, anecdotal discussions with peers, and with investors or board members.  The devil is in the details, however, in making sure the data truly represents the metric as intended.  In addition, it is important to understand how metrics are defined when comparing one company’s non-GAAP metrics against those from another company. 

At OPEXEngine, we consult closely with dozens of companies on their definitions of these metrics.  Over the past 8 years, we’ve worked with hundreds of companies, as well as with investors reviewing the performance of their portfolios and we’ve seen how some of these key metrics have evolved.  I’d like to share a few of the issues that we’ve run into in developing accurate data for these important benchmarks. 

Calculating CAC

Take for example customer acquisition cost or CAC.  CAC is key to analyzing whether a company can profitably acquire new customers and grow the business.  Customer acquisition costs should reflect as best as possible everything it takes for a company to acquire new customers.  How do you calculate this number?  Typically, some portion, or all of sales and marketing expense is divided by the number of new customers acquired in a given period.  Usually, the expense data is taken from one to two quarters back from the period in which the customers were actually contracted, to account for some delay due to the length of the average sales cycle.  In other words, you spent money and effort last quarter or last year, which resulted in a new customer this year, so there is a lag that you want to account for when dividing your expenses by the number of new customers acquired.

The Details of Calculating CAC

What constitutes the right inputs to calculate the cost to attract and close new customers?  As in many of the non-GAAP metrics, some judgment needs to be applied.  Here are some considerations.   Do you only count salaried sales and marketing employees, or include full time contractors as well?   Some companies pay for lunch for their employees, arguing that it makes the employees more productive and focused on their work.  So, it is a productivity expense, and shouldn’t the lunches of those employees that are focused on bringing in new customers be included in the customer acquisition cost?  That expense could be quite high relatively for smaller, newer companies.  

Do you include recruitment costs for new sales people, which may be sitting in G&A expense, and which will make your CAC look much higher in the start-up or expansion years?   Or do you exclude all one time charges like recruitment fees and only look at regular, run rate expenses to acquire new customers?  Certainly travel, computer and cell phone expenses for people dedicated to “hunting” new customers should be included in CAC.  How about the cost of running and promoting the annual user or company event?  Is it primarily for existing customers, or do you include prospects as well?  Is the user event really a theme event that promotes your brand and thought leadership to prospects?  If so, then probably you should allocate some portion of this expense to CAC.

Customer Retention Rates

Another metric which can be hard to define is Customer Retention, or churn.  If your company runs pilot or trial periods, and collects payment upfront, but the payment is for a short term period, do you include these customers in your churn rate, or not?  Most companies do not.  Customer retention rates aim at understanding the retention of customers that have committed to using your service, and trial period customers by definition have not yet committed.  That is not to say that it isn’t useful to track how many of these customers convert to being committed customers, but that is a different metric.

Customer Churn Rate Calculation

The customer churn rate calculation results in a different number depending on whether you track it by the date when customers renew versus taking the set of customers that were using your service in the prior period, and whether they are still using the service in the next period.   One of the problems with tracking churn by the date of the renewal is that the contract period might be variable.  Or, if a customer changes their contract, ie., increases or decreases the number of subscribers during a contract, many systems will then change the date of renewal to the new start date. 

In addition, the churn rate can be muddied if you include new customer adds during the period being examined.  For example, you start 2013 with 10 customers.  In June, 2 customers cancel their contracts, and in October, you add one more customer.  At the end of 2013, you have 9 customers.  Is your churn rate 20% or 10% based on having 9 customers from a start of 10 customers?  In order to truly understand whether you are keeping your existing customers, new customers should not be included in the churn or renewal rate, so your churn rate was 20% in this example.

In our benchmarking at OPEXEngine, we track both customer retention rate and net dollar renewal rate.  Customer retention rates and dollar renewal rates usually are different numbers.  You may keep a customer, but the value of their subscription has been reduced because they negotiated a new discount for the renewal, or because they reduced the number of users, or they increased the number of users and are now paying more.  It is recommended to track both churn metrics, to avoid one metric hiding problems in the other. 

Customer retention rate is calculated by taking the number of customers at the end of the previous period, then looking at those same customers at the end of the current period, and determining the percentage that are still using the service.  For net dollar renewal rate, we look at the value of the contracts from those same customers at the end of the previous period, and then looking at the value of those same contracts at the end of the current period, and determining the percentage change.  We include upsells and cross sells that increase the value of those same contracts, because when benchmarking, we are dealing with many companies that define upsells and cross sells differently, so we take the net value change.  When a company is looking at dollar churn within their own company, most companies will track upsells or additional product sales to an existing company separately, in order to track their performance in marketing upsells, etc. to existing customers.

In conclusion, it is important to have a clear definition of your non-GAAP metrics, and to communicate it effectively to all your stakeholders.  In addition, remember that other companies most likely will have different definitions of their metrics resulting in different numbers.  Benchmarks developed without clear and consistent definitions of the data will not give apples to apples comparisons.

 OPEXEngine’s Software and SaaS benchmarking data covers SaaS metrics like the cost of acquisition costs, customer retention rates and dollar renewal rates, and comprehensive financial and operational metrics for small and mid-sized companies.  For more information, go to:  www.opexengine.com     


Aligning the CFO and CEO

Last week’s “Deciphering Finance” conference in Irvine, California, organized by the SIIA was a great forum for sharing best practices among Finance leaders and peer networking.   I thought one of the many useful sessions was the discussion between an experienced CEO and his CFO which captured some of the key issues in that relationship.  Here’s a summary of the discussion: 

Aligning the CFO and CEO

The CFO and CEO must be aligned.  The CFO should be a trusted advisor to the CEO, but trust can be hard to earn.  The relationship between CFOs and CEOs is often complicated by the fact that CFOs tend to be cut from the same cloth, while CEOs come from varied backgrounds, such as product/engineering, sales, finance, or a pure strategic background. 

Tensions often arise between the CFO and CEO.  Conflict may come from 2 sources:  style or substance.  Style conflict can come about because the CFO and CEO have two different styles and chemistry.   One person hates to be interrupted before finishing their sentence, and the other loves to interrupt.  One person is analytical and the other is intuitive.  One likes written reports and the other likes verbal reports.  These issues can be managed with good communication and emotional maturity, but sometimes the chemistry isn’t there and the relationship isn’t going to work.

The other source of tension can be substance.  The CFO and CEO may have substantial differences of opinion about business issues.  Differing perspectives can lead to better decisions and management policies that take into account different points of view if each person trusts the other’s perspective.  However, if the CEO uses his/her power to push the CFO into the corner and doesn’t listen to the CFO, it can lead to serious problems.  The CEO also needs to be able to differentiate between differences of opinion, versus problems with accounting rules.  If the issue is a concrete accounting or regulatory rule, the CFO can’t change the rule, even if the CEO doesn’t like the accounting rule, and the CEO has to trust that the CFO can’t do anything about it, but that trust is hard to earn.  

From the perspective of the CEO, trust is earned, not granted with the title.  The CFO needs to prove his/her value-add, protecting the company, and bringing up issues of which the CEO wasn’t aware.  It is on this basis that a CEO will seek out the opinion of the CFO and listen to him/her.   A CEO is looking for a CFO with no personal agenda, someone who is focused on building the company and supporting the CEO. 

Efficient and Innovative Solutions

A CFO needs to be innovative, not on auto-pilot.  SaaS is an innovative model.  You need efficient compliance, not just compliance.  Take the example of a company hit with a frivolous lawsuit, and outside lawyers say it will take $150k to fight.  Can the CFO sit down with the corporate council and come up with a creative solution?  Can they work together, figure out a way to settle out of court for $50k, have the CFO find the money from other parts of the budget, take it off the table and move ahead quickly?  That shows proactive, creative compliance, as compared to passively accepting problems that come up.  That is the kind of leadership the CEO is looking for from the CFO.  


SaaS Benchmarks – Security and Performance Costs Drive Up Cost of Revenue

By Lauren Kelley, CEO and founder, OPEXEngine

Security and performance investments, among other items, are driving up COGs for SaaS growth companies

The ultimate goal of a subscription business model is to reduce the cost per subscriber and increase profitability. That does not mean, however, that cost ratios follow a smooth downward trend as revenues grow. 10 years after Salesforce.com went public in 2004, we are seeing that SaaS COGs may trend upward, and hit several plateaus along the way. Security and performance investments are two major drivers of the increasing costs experienced by most of the leading SaaS companies today.

In the early days of Cloud computing, SaaS vendors worked hard to convince customers, particularly enterprise customers, that their confidential data was safe in a Cloud-hosted system. That argument has become easier over time as SaaS and subscription services have become more accepted. Cloud providers typically have better security than most companies can afford individually since the Cloud provider can spread the cost of security infrastructure and measures across all customers. SaaS applications are built on an infrastructure that provides the security, performance, and reliability normally found in only the most sophisticated IT departments.

However, maintaining the highest security levels is a continually evolving investment, both because the threat keeps changing, and because the technologies and industry standards keep evolving. Of course, fallout from NSA snooping hasn’t made it easier for US companies either. In addition, as the SaaS model has become more accepted worldwide, and SaaS vendors grow revenues overseas, supporting far flung customers requires greater investments in infrastructure to deliver high levels of performance. Further, many successful SaaS companies move their customer base upstream, from small to mid-sized customers and departmental use, to larger customers and global enterprises, with much higher performance demands.

Security investments fall into a number of areas: physical security of the servers, network security, application security, internal systems security and operating systems security, as well as following the most up to date third party certifications. Investments to improve and expand performance similarly fall into a number of areas; chief among them are often database and data center expansions and improvements.

Take a look at Salesforce, since their IPO in 2004. Salesforce achieved $4B in recognized revenues in the fiscal year ending January 31, 2014. They led the way in the business strategy of building brand in the small and mid-market, then moving upstream to larger enterprise customers, as well as growing a single application into an enterprise platform. As Salesforce has grown customer usage dramatically, expanded worldwide, and offered more applications and functionality to enterprise customers and a platform to partners, Salesforce’s COGs’ trendline displays periods of increasing expenditures, then some reduction, then a higher peak in percentage of revenue spent on COGs.

Salesforce’s COGs as a percent of revenue were almost 24% in FY 2014, growing 33% from the 18% it was in 2004 when revenues totaled $96M. In the meantime, revenues have averaged 50% growth year-over-year in the 10 years. Despite rising over time, Salesforce’s COGs growth rate is lower than the company’s revenue growth rate, so the per subscriber COGs has been reduced — the ultimate goal of a SaaS business.

salesforce-cogs

Compare COGs at the time that Salesforce went public in 2004 to those metrics for some SaaS companies that went public recently. Here’s the most recent data for these companies for FY 2013:

fy2013-cogs

These high growth SaaS companies all have higher COGs ratios than Salesforce does currently and significantly higher than Salesforce did when it went public in 2004. In looking at the 2013 filings for 30 SaaS companies under $300M, COGs averaged 33.2% of revenue. It will be interesting over the next 10 years to see whether these companies have to increase their COGs ratio in a similar fashion to Salesforce or whether this initial higher investment means that their COGs ratios can be reduced as revenues grow.

Key take aways:
• COGs as a percent of revenue are not being reduced as fast growth SaaS companies expand, but actually increasing for many companies as they extend their market reach;
• On-going and evolving security and performance investments are major drivers of COGs, and
• Company growth plans should regularly benchmark these costs and COGs overall against peers and market leaders as new technologies and evolving hosting models are changing the ratios.

OPEXEngine’s Software and SaaS benchmarking has COGs data for private and public vendors, with peer group break-outs by size of revenues, business model and average contract size categories so that like companies can be compared more closely. For more information, go to: www.opexengine.com



Growth & Changing Face of U.S. Software Industry

Annual Study Finds SaaS Driving Largest Revenue Gains, and Indications of Growth Outside Silicon Valley, Massachusetts & Other Traditional Tech Centers

For Immediate Release

SIIA Contact: Beth Dozier, +1 202-429-1833, bethdozier@rational360.com
OPEXEngine Contact:  Christine Dunn, +1 617.484.1660, cdunn@savoirmedia.com

Washington, D.C. (Oct. 17, 2013) – Small and mid-sized companies in the U.S. software industry are thriving in the post-recession economy, with software-as-a-service (SaaS) firms consistently experiencing the greatest revenue growth and hiring expectations, according to a study released by the Software & Information Industry Association (SIIA), the principal trade association for the software and digital content industries. 

The 2013 Software & SaaS Financial Benchmarking Industry Report was produced by SIIA partner OPEXEngine, the leading aggregator of financial and operating benchmarks for small- and mid-sized software companies. To complete this seventh annual report, OPEXEngine surveyed several hundred private and public U.S. firms with revenues between $1 million and $450 million

The report finds that the entire small and mid-sized U.S. software industry continues to experience strong growth, however SaaS firms are consistently experiencing the greatest revenue growth and hiring expectations in today’s post-recession economy. According to the study, private SaaS firms experienced average revenue growth of 35 percent in 2012, edging higher than the 30 percent achieved by private software firms. In addition, 2012 revenue growth for private SaaS companies was more than twice that of on-premises software companies. Public SaaS firms averaged 25 percent revenue growth in 2012, but the top quartile had a median of 48 percent growth.

While hiring expectations were also strong for private small and mid-sized firms, SaaS companies demonstrated a slightly more significant commitment to job growth. According to the study, private companies plan  to increase employee headcount in 2013 by an average of 26 percent – continuing a positive hiring trend benchmarked at the same rate last year – with private SaaS companies averaging closer to 30 percent planned growth in headcount for 2013. 

“The software resurgence continues, with small- and mid-sized software firms exhibiting some of the strongest post-recession growth rates of any sector in the U.S.,” said Rhianna Collier, Vice President of SIIA’s Software Division. “The study also demonstrates that the face of the industry is shifting, now more than ever, from on-premises firms to SaaS. The greatest gains now unquestionably belong to SaaS firms, which are leading a software industry expansion across the U.S.”

OPEXEngine also noted that more companies outside traditional tech centers on the East and West coasts participated in this year’s study. This data allowed OPEXEngine to, for the first time, compare software firms based in the Central and Mountain regions to their counterparts based in Silicon Valley, Boston and elsewhere. The increased participation also offers a strong indication that there is considerable software industry growth taking place in these non-traditional regions.

“The rise of SaaS, with its remote cloud-based access, appears to be allowing for the establishment of more firms outside major tech centers,” said Lauren Kelley, CEO and founder of OPEXEngine.  “For the first time in seven years conducting this report, we see clear indications that companies are no longer restrained by proximity to the traditional coastal centers of human or financial capital. The expansion of SaaS appears to be contributing to a geographic expansion for the software industry.”

In comparing software firms in different geographic regions, OPEXEngine found that private West Coast firms experienced an average revenue growth rate of 53 percent in 2012, compared to 30 percent for East Coast firms and 25 percent for those in the Central and Mountain regions.   Venture-backed firms had the highest growth among private firms, regardless of location with median 47 percent revenue growth last year, versus 13 percent for the non-venture backed firms.  Profit metrics, however, were better for Central and Mountain companies than for companies located on the East Coast, but not as strong as profit metrics for West Coast companies.

Key findings from the 2013 Software Benchmarking Industry Report include:

  • Private firms expect to increase headcount by an average of 26 percent.  The biggest hiring increases are expected by firms with revenue under $10 million (35 percent) and between $10 and $20 million (26 percent).
  • Private software firms achieved an average revenue growth rate of 31 percent in 2012, compared to 37 percent in 2011 and 28 percent in 2010.
  • Private companies in the $20-$40 million range had the highest revenue growth rate (median 55 percent), compared to 46 percent in 2011.
  • Public companies under $450M experienced a median revenue growth rate of 22 percent, and expect to increase headcount by an average 20 percent in 2013.
  • Public companies in the top quartile showed a median of 48% revenue growth in 2012 over 2011.
  • Private SaaS companies fared much better than private on-premises software companies, experiencing a median revenue growth rate of 35 percent, compared to 16 percent for on-premises firms.
  • Median revenue growth rates were higher for West Coast companies – 53 percent versus 30 percent for East Coast companies and 25 percent for Central and Mountain companies.
  • West coast private firms utilized the most venture funding, having taken an average of $53.5M, while East firms averaged $37.3M and Mid-West/Mountain region private firms averaged $11.4M venture funding.

The 2013 Software & SaaS Financial Benchmarking Industry Report provides extensive financial and operating metrics for U.S.-based companies with 2012 revenues of between $1 million and $450 million. Benchmarks cover key financials, including detailed expense ratios, revenue and profit metrics, geographic break-outs, employee statistics, as well as customer and sales model comparisons. The report also looks specifically at Software-as-a-Service (SaaS) vendors and breaks out all the benchmarks for smaller, private SaaS companies as well as for larger, public, SaaS companies. The 2013 report is the seventh annual benchmarking of the software industry conducted by OPEXEngine.

The 2013 Software & SaaS Financial Benchmarking Industry Report is available for purchase at www.opexengine.com.

About SIIA

SIIA is the leading association representing the software and digital content industries. SIIA represents approximately 800 member companies worldwide that develop software and digital information content.  Information technology (IT) and software security are critical issues to SIIA’s members, many of whom strive to develop safe, secure and state-of the-art products that effectively serve their commercial and government customers alike, while protecting their intellectual property. The SIIA Software Division provides a forum for companies developing the applications, services, infrastructure and tools that are driving the software and services industry forward. For further information, visit www.siia.net/software.

About OPEXEngine

OPEXEngine is the industry leader in delivering financial and operating benchmarks for the technology industries.  OPEXEngine’s benchmarking reports are key tools used by senior operating executives to support the budgetary, strategic planning and investment process.  In addition, OPEXEngine’s On Demand Financial Insights Reports deliver company and industry comparisons in the areas of valuations, revenues, cost and expenses, profitability, employee productivity and cash management for any US public company, created on the fly in minutes.   For further information, visit www.opexengine.comzp8497586rq