With another technology IPO trading at 100%+ after the 1st day of trading (BigCommerce: $BIGC), it appears that institutional buyside is really having their way with venture capital and investment bankers. Off the back of this continued mispricing by bankers, we have decided to publish our SaaS Commerce Comparable table to help make the valuation picture more clear. eCom Store Platforms While BigCommerce trades at a near 6oo% discount to Shopify’s EV/Gross Profit, it is actually trading at a 25% premium to Shopify’s SaaS Growth multiple. At the same time while Shopify reported very strong merchant sales (up 83% Q/Q), […]
SQ
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We have created a table that summarizes most comparable data from our previous surveys. This data is used in our relative equity valuations. For Institutional Equity Research subscribers, we are providing this table while also making all our raw data available to you on request in excel format.
We have completed a survey of 600 respondents. The purpose of the survey was to provide churn, penetration and awareness rates for Square (SQ-NYSE). According to our estimates, Square has strong subscriber metrics for its core retail product solutions. The churn rate we obtained helps us compare the company on a Subscriber as a Service (SaaS) basis versus its public peer group. While Square was rightfully boastful about a 3- to 4-quarter payback period on sales and marketing investments in its Q2 shareholder letter and conference call, the lack of providing a net dollar retention rate or churn rate remains […]