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.

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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