SaaS Revenue Growth Benchmarks & Thoughts on Eloqua S1

  

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Eloqua filed to go public yesterday and it generated a lot of buzz around HubSpot.  We are thrilled to see marketing software companies succeeding (Responsys went public earlier this spring as well) and think it helps validate the space.  Big congratulations.

On HubSpot's internal wiki I posted some take-aways after reading the s-1 and wanted to reposted it below.

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SaaS Revenue Growth Comparison Chart

This chart shows the growth rates of several public SaaS companies from a 'base' year. This base year was taken as the year when the company had $5 to $12m in revenue.  The market cap valuations are based on Aug 2011.  Capital raised is from various public sources and press releases.

Eloqua S1

• Company
  • Raised $40m (most recently from Bessemer Ventures)
  • Upstream with many brand name clients
  • 500 customers in 1/1/2009, 1,000 today
  • 284 Employees
  • They have a 'Revenue Performance Management' Suite which includes: 
  • Marketing Automation, 
  • Sales Effectiveness and 
  • Revenue Suite
  • Key benefits are listed as:
    • Comprehensive On-Demand Revenue Performance Management Platform
    • Ability to Track, Capture and Analyze a Potential Buyer’s Digital Body Language
    • Real-Time Insight to Facilitate Revenue Growth and Operational Efficiency
    • Seamless Integration with Other Key Enterprise Systems
    • Differentiated Proprietary Knowledge and Professional Services
• Revenue was listed as 50.7m last year, $40.9 in 2009 (see chart below for revenue growth numbers)
• Pretty standard split between services and software revenue
• Marketing/Sales
• 90 People in Marketing & Sales
• Direct Sales is 85% of new sales (rest re-sellers)
• 10% of sales outside US
• Typically 1 or 2 year contracts billed quarterly, semi-annually or annually. No month-to-month
• Sales team split between enterprise and SMB
• Sales are mostly hunters and 'Customer Success Managers' handle renewals and 'add on software and services'.
• Services
• 65 ppl in customer support, 26 in professional services
• Services sales are 10% of total revenue - pretty standard
• Services are unprofitable (Total Services Costs about 50% of total Services Rev in 2010)
• Professional services include application configuration, system integration, business process re-engineering and mapping and data migration.
• They started outsourcing much of this in 2008 - when the recession hit - but in 2011 are re-investing and growing the team