SaaStr · 2015-01-16
· 4156d
Enterprise SaaS IPOs Mark Beginning of Major Market Wave, Not Peak
Jason Lemkin argues that recent Enterprise SaaS IPOs represent the start of a long-term growth cycle rather than a temporary trend. He identifies three structural drivers of acceleration: explosive market growth as businesses move to cloud, faster scaling due to larger addressable markets, and intensifying competition that strengthens products and adoption.
Metrics in this report
Eloqua Time to $1B Market Cap
13years
from founding
Founded 1999, acquired 2012
HubSpot Time to $60M ARR
5years
from founding
Before billion-dollar IPO in late 2014
Marketo Time to $1B Market Cap
7years
from founding
Founded 2006, IPO 2013
Salesforce Annual Recurring Revenue
5billion USD
run-rate
Enterprise SaaS leader, progressing to $10B target
Slack Time to $10M ARR
less than 1years
single-digit months
From revenue launch
Splunk Post-IPO Market Cap
7billion USD
market cap
Enterprise IPO example
Workday Post-IPO Market Cap
14billion USD
market cap
Enterprise IPO example