SAN FRANCISCO, Aug. 11, 2020 /PRNewswire/ -- KeyBanc
Capital Markets Inc. (KBCM), the corporate and investment banking
unit of KeyCorp (NYSE: KEY), today released results from its
Technology Group's 11th annual Private SaaS Company
Survey (formerly known as the Pacific Crest Securities Private SaaS
Company Survey), the benchmarking report by which the
Software-as-a-Service industry measures financial and operating
performance. This year's survey, which had over 500 private SaaS
company respondents, focused on the impact of COVID-19.
One key finding is that top-line median 2020 growth expectations
have been cut roughly in half, compared to last year's growth and
initial 2020 estimates entering the year. The median 2020 growth
rate outlook for companies with annual recurring revenues (ARR) of
at least $5 million is approximately
20%, a major decline from the 36% median growth achieved in
2019 and the nearly 40% original outlook for 2020. Even the fastest
growing companies are seeing a significant slowdown, with the top
quartile growers in 2019 seeing a median reduction of ARR growth
from 96% in 2019, to 41% now expected for 2020.
The vast majority of companies in the survey have reduced their
2020 forecasts by at least 5%, with only 13% of respondents
expecting zero impact or a positive tailwind. Notable positive
outliers include SaaS businesses that accelerate work-from-home,
virtual and e-commerce operations, as well as those serving the
Infrastructure Software, DevOps and Security sectors.
"These results are startling, perhaps, but not surprising. An
economic crisis of this magnitude simply must take a toll, even if
there are counter-balancing opportunities," said David Spitz, managing director of KBCM's
Technology Group and primary author of the survey. "For most, the
net impact is negative near term, but importantly, these businesses
are still showing tremendous relative growth in an otherwise
incredibly difficult economic environment. The data show where the
pockets of strength are, by category, where the challenges are, and
how different companies are responding operationally."
In the midst of COVID-19, the KBCM Private SaaS Company Survey
establishes operational and financial benchmarking data for
executives and investors in SaaS companies, from go-to-market
selling strategies, customer retention rates and customer
acquisition costs, to operational management, growth and margin
structures. To view the full survey results and to hear a deeper
analysis of the findings, visit us at
www.key.com/saassurvey.
About the KBCM Technology Group Private SaaS Company
Survey
The KBCM Technology Group Private SaaS Company
Survey was first developed by Pacific Crest Securities in 2010 to
provide benchmark performance metrics for SaaS companies. Pacific
Crest was acquired by KBCM in 2014 and rebranded as KBCM Technology
Group, combining the technology specialist approach of Pacific
Crest with the expanded capabilities and broader resources of KBCM
and its parent, KeyCorp (NYSE: KEY). More than 500 senior
executives from SaaS companies around the world participated
anonymously and confidentially in the 2020 survey. Responses were
submitted online between June and July
2020 with 2020 year-to-date results current through
May 31, 2020. KBCM cannot verify
accuracy of responses. Observations and commentary contained herein
relate solely to the survey results and cannot necessarily be
applied elsewhere. For more information about the KBCM Technology
Group, please visit us online.
About KeyBanc Capital Markets
KeyBanc Capital
Markets is a leading corporate and investment bank providing
capital markets and advisory solutions to dynamic companies
capitalizing on opportunities in changing industries. Our deep
industry expertise, broad capabilities and unique ideas are
seamlessly delivered to companies across the Consumer & Retail,
Diversified Industries, Healthcare, Industrial, Oil & Gas, Real
Estate, Utilities, Power & Renewables, and Technology
verticals. With over 800 professionals across a national platform,
KeyBanc Capital Markets has more than $32
billion of capital committed to clients and an award-winning
Equity Research team that provides coverage on over 600
publicly-traded companies.
About KeyCorp
KeyCorp's roots trace back
190 years to Albany, New York.
Headquartered in Cleveland, Ohio,
Key is one of the nation's largest bank-based financial services
companies, with assets of approximately $171.2 billion at June 30,
2020. Key provides deposit, lending, cash management, and
investment services to individuals and businesses in 15 states
under the name KeyBank National Association through a network of
more than 1,000 branches and approximately 1,400 ATMs. Key also
provides a broad range of sophisticated corporate and investment
banking products, such as merger and acquisition advice, public and
private debt and equity, syndications and derivatives to middle
market companies in selected industries throughout the United States under the KeyBanc Capital
Markets trade name. For more information, visit
https://www.key.com/. KeyBank is Member FDIC.
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SOURCE KeyCorp