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Tech Topic: Vertical SaaS (part 3)- Procore & EverCommerce
Before I start, Hunt mentioned an article in the Economist this week called Cloudy with a Darth of chips which provides a good overview of how the global chip shortage came to be.
This week continued our discussion on industry vertical specific SaaS companies. Check out parts 1 and 2 of this series in previous episodes…
This week, we discussed EverCommerce (EVCM) & Procore (PCOR). Both companies went public recently and are Vertical SaaS businesses.
Procore (PCOR)
Procore is a leading provider of construction management software. Over 1 million projects and more than $1 trillion USD in construction volume have run on Procore's platform. Procore’s platform connects key project stakeholders to solutions Procore has built specifically for the construction industry—for the owner, the general contractor, and the specialty contractor. Procore's Marketplace has a multitude of partner solutions that integrate seamlessly with Procore’s platform, giving construction professionals the freedom to connect with what works best for them. Procore is headquartered in Carpinteria, California, and has offices around the globe.
The company held its IPO on May 24, 2021 at a price to the public of $67.00 per share (above the target range of $60-65). The company has a market cap $11.2B, representing 20.4x NTM revenue and ~40% premium to the IPO.
EverCommerce (EVCM)
EverCommerce is driving digital transformation across multiple industries in the service economy. Their solutions help service-based businesses accelerate growth, streamline operations, and increase retention through their EverPro, EverHealth, and EverWell product offerings…
EverPro - Software solutions for Field Service & Home Improvement professionals.
EverHealth - Software solutions for health care providers.
EverWell - Software solutions for fitness, wellness, and salon & spa professionals.
EverCommerce priced its IPO on June 30, 2021, in line with the terms in its prospectus: 19.12 million shares at $17 – the mid-point of its $16-to-$18 price range – to raise $324.7 million and trades at $19.81 today. The company has a market cap $5.395B, representing 10.5x NTM revenue. For more information on Evercommerce, check out the company’s prospectus.
Relative Valuations
Supplemental Data
Supercompounders
Energy Data
Macro
Tech
Semiconductors
Semiconductor Industry Association Global Billings Report
Bureau of Economic Analysis Semiconductor Import / Export
Cryptocurrency
I’ve said before that I think crypto is a bit of a Ponzi scheme. Interestingly, I came across an article this week that challenges my generalization and provides some context worth considering. Hopefully crypto, and web3 bring real value in the future.
Cloud Multiples
Check out the most recent edition of Clouded Judgement for the latest SaaS multiples. Also, this week Ball covers the topic of growth durability - long story short - best in class SaaS companies are seeing long term durable growth at higher rates than ever before.
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