際際滷

際際滷Share a Scribd company logo

PSA SaaS market quick overview

Patrick Gildea
Patrick Gildea

This document discusses the professional services automation (PSA) software market. It notes that the PSA market is a $3 trillion global market, with the global PSA software market estimated at $7.3 billion in 2016 and projected to reach $12.9 billion by 2022. The PSA software market has attractive characteristics as a recurring revenue SaaS model with room for multiple leaders given the fragmented landscape. Several factors could drive growth, including the transition to cloud, services sector growth, and global resource pooling.

1 of 5
Download to read offline
By Patrick Gildea 9/6/17 1 DRAFT FOR DISCUSSION PURPOSES ONLY
則 Professional Services a $3 Trillion global market (1) 則 $7.3 Billion global PSA Software market (est US ~$300M) (2) 則 >10% CAGR, reaching $12.9 Billion by 2022 (2) 9/6/17 2 Large Growing Market Attractive SaaS Model Fragmented Landscape Several Growth Drivers 則 Recurring revenue model, typically high retention / low churn 則 Low cost to maintain annuity; scale delivers strong EBITDA 則 Transitioning from on-premise to cloud a key market accelerant 則 No dominant player in PSA, likely room for 2-3 scaled leaders in space 則 Several adjacent verticals and likely add-on cross-sell/upsell opportunities 則 M&A roll-up opportunities likely abundant 則 Market shift from on-premise to cloud; services sector growth and global resource pooling 則 Expansion via International, enterprise, vertical reach and product (i.e. marketplace concept) 則 In-organic opportunities likely exist through vertical or regional expansion Notes: 1) Forbes article 6/15/2017 and company website 2) Grand View Research 12/2016 and own estimates based on census data
9/6/17 3 $7,313 $12,880 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2016 2022 PSA Market Professional Services Automation is used to standardize business processes and provide reports, insights, and control for resources and projects. $USD in millions Source: Grand View Research 2016 Multi-Billion Dollar Market Double Digit Growth Shift to Cloud Globalization
9/6/17 4 Project Collaboration Software (Generic + PPM) Professional Services Automation Time & Expense Management
則 PSA market remains fairly nascent with no clear leader. 則 Mavenlink appears to be best positioned having a more robust product portfolio and growth trajectory 則 FinancialForce is a strong competitor, but has limitations around Salesforce dependency 則 Netsuite appears to be ceding market to competitors. 則 Upland interesting business as its the only public company and has executed a successful roll-up strategy in the space 9/6/17 5 Product Category Professional Services Automation Competitors Project Management Resource Management Team Collaboration Project Accounting BI / Analytics Integrations Sources: Datafox.com, Owler.com, Crunchbase.com, and various company websites. Est. Employees Total Funding Est. Customers 2016 Est. Revenue $20-30M +5,000 $84.5M 250 $20-30M na $194.0M 500 $40-70M na $38.0M 350 $20-30M +2,000 $91.0M 200 $30-40M na $28.5M 200 $74.5M +2,500 $121.8M 350 Product/FeatureSet

More Related Content

PSA SaaS market quick overview

  • 1. By Patrick Gildea 9/6/17 1 DRAFT FOR DISCUSSION PURPOSES ONLY
  • 2. 則 Professional Services a $3 Trillion global market (1) 則 $7.3 Billion global PSA Software market (est US ~$300M) (2) 則 >10% CAGR, reaching $12.9 Billion by 2022 (2) 9/6/17 2 Large Growing Market Attractive SaaS Model Fragmented Landscape Several Growth Drivers 則 Recurring revenue model, typically high retention / low churn 則 Low cost to maintain annuity; scale delivers strong EBITDA 則 Transitioning from on-premise to cloud a key market accelerant 則 No dominant player in PSA, likely room for 2-3 scaled leaders in space 則 Several adjacent verticals and likely add-on cross-sell/upsell opportunities 則 M&A roll-up opportunities likely abundant 則 Market shift from on-premise to cloud; services sector growth and global resource pooling 則 Expansion via International, enterprise, vertical reach and product (i.e. marketplace concept) 則 In-organic opportunities likely exist through vertical or regional expansion Notes: 1) Forbes article 6/15/2017 and company website 2) Grand View Research 12/2016 and own estimates based on census data
  • 3. 9/6/17 3 $7,313 $12,880 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 2016 2022 PSA Market Professional Services Automation is used to standardize business processes and provide reports, insights, and control for resources and projects. $USD in millions Source: Grand View Research 2016 Multi-Billion Dollar Market Double Digit Growth Shift to Cloud Globalization
  • 4. 9/6/17 4 Project Collaboration Software (Generic + PPM) Professional Services Automation Time & Expense Management
  • 5. 則 PSA market remains fairly nascent with no clear leader. 則 Mavenlink appears to be best positioned having a more robust product portfolio and growth trajectory 則 FinancialForce is a strong competitor, but has limitations around Salesforce dependency 則 Netsuite appears to be ceding market to competitors. 則 Upland interesting business as its the only public company and has executed a successful roll-up strategy in the space 9/6/17 5 Product Category Professional Services Automation Competitors Project Management Resource Management Team Collaboration Project Accounting BI / Analytics Integrations Sources: Datafox.com, Owler.com, Crunchbase.com, and various company websites. Est. Employees Total Funding Est. Customers 2016 Est. Revenue $20-30M +5,000 $84.5M 250 $20-30M na $194.0M 500 $40-70M na $38.0M 350 $20-30M +2,000 $91.0M 200 $30-40M na $28.5M 200 $74.5M +2,500 $121.8M 350 Product/FeatureSet