Public SaaS companies are a great way to outsource your software needs. They work by providing access to software over the internet, which means you don’t have to worry about installing or maintaining anything on your own servers.
This can be a huge benefit for businesses of all sizes, and there are plenty of public SaaS companies to choose from. However, there are also some risks associated with using them, so it’s important to understand what they are before making a decision.
15 Most Valuable B2B Public SaaS Companies
This article will examine the 15 most valuable B2B SaaS businesses. You can skip the detailed analysis of the outlook for the B2B SaaS sector in 2021 and simply go to the 5 Most Valuable HTML2B SaaS Companies.
Before we dive into our list, let us first understand what it means to own a B2B SaaS business and how the industry has changed.
Software as a Service (B2B SaaS) refers to businesses that offer software solutions to other businesses. Software is needed by corporations for accounting, word processing, and managing customer relationships (CRM), as well as developing and optimizing organizational procedures, surveillance and monitoring. B2B SaaS providers offer cloud-based solutions for enterprises.
They create, update, and render apps from a central hub that is accessible remotely to organizations (their customers) via the cloud, which is made up of SaaS-provided servers. Enterprise companies can subscribe to SaaS companies that specialize in B2B. To access and use these cloud-based solutions, companies subscribe and pay a monthly or yearly subscription fee.
Many industries have been affected by the shift from working in an office environment to working from home almost every night. Remote working is becoming the norm and investing in on-premise systems is no longer an option.
Global Software as a Service Market 2021-2025 report shows that the global Software as a Service market will grow by $99.99 billion in five years (2021-2025). Click To Tweet
This is
SaaS has been a game-changer in the business world. Organizations find cloud-based products attractive because they are easily accessible from anywhere. They just need a web browser to access powerful tools that were once installed on hard drives and storing system resources.
SaaS applications can be updated automatically on the server-side, so there is no need to spend time downloading and installing new updates. All clients have instant access to the latest, bug-free and improved version of the software, provided the developer has updated it on the server.
Cloud-based solutions are preferred by organizations over traditional ones. Cloud-based software is not susceptible to piracy, does not need to be updated client-side, and doesn’t hog memory.
The SaaS industry’s major players include SAP SE (NYSE : SAP), salesforce.com (NYSE : CRM), Adobe Inc., (NASDAQ: ADBE), Microsoft Corporation, (NASDAQ: MSFT), and Oracle Corporation (NYSE : ORCL). Statista.com reports that these five companies accounted for half the SaaS enterprise market share in 2019.
We first looked for cloud-based companies to compile our list. Then, we separated companies that offered solutions to consumers from those that hosted products for businesses.
We then sourced market capitalization information for each company from Yahoo Finance, and ranked them according to their market cap. Market capitalization is a key metric in determining the business’s value. It is what an investor will pay for a company stock.
We now have some insight and can dive into our list of 15 most valuable B2B SaaS businesses:
15. Slack Technologies, Inc. ( , NYSE: WORK).
Market Cap $26.22 Billion
Slack Technologies, Inc. (NYSE WORK) is well-known for its product, Slack.
Slack Technologies, Inc. (NYSE WORK) has a market value of $26.22 billion, which is enough to be included in our list of 15 most valuable B2B SaaS businesses.
HubSpot, Inc., (NYSE HUBS), Snowflake Inc., (NYSE NOW), Square, Inc., (NYSE : SQ), SAP SE, (NYSE : SAP), salesforce.com, Inc., (NYSE : CRM), Adobe Inc., (NASDAQ: ADBE), Microsoft Corporation, (NASDAQ: MSFT), and Oracle Corporation (NYSE : ORCL), Slack Technologies, Inc., (NYSE : WORK), is one of the most important SaaS companies worldwide.
14. HubSpot, Inc. (NYSE: HUBS)
Market Cap $26.30 billion
HubSpot, Inc. (NYSE HUBS),
ClearBridge Investments mentioned HubSpot,
” HubSpot is a marketing automation software company that helps small businesses to digitally enable their sales, marketing and other related processes. HubSpot’s first marketing product allows customers to publish content to attract customers and nurture leads. However, HubSpot has seen its growth accelerate as it sells a full range of services and products to assist with inbound customer support to convert leads.
13. Veeva Systems Inc. ( , NYSE: VEEV).
Market Cap $48.23 Billion
We are pleased to place Veeva Systems Inc. (NYSE : VEEV) at number 13 on our list of the 15 most valued B2B SaaS businesses. This American software company provides cloud-based solutions to companies in the pharmaceutical and life science industries. Veeva Systems Inc. (NYSE : VEEV), is committed to customer success. It has more than 1000 customers, including some of the largest pharmaceutical companies in the world. Veeva Systems Inc. (NYSE VEEV), offers a wide variety of products that include data analytics tools and CRM tools, as well as automation tools. Veeva Systems Inc. (NYSE VEEV) is valued at $48.23 trillion on the open market.
Square, Inc., (NYSE : SQ), Snowflake Inc., (NYSE : SNOW), SAP SE, (NYSE : SAP), salesforce.com, Inc., (NYSE : CRM), Adobe Inc., (NASDAQ: ADBE), Microsoft Corporation, (NASDAQ: MSFT), Oracle Corporation, (NYSE : ORCL), ServiceNow, Inc., (NYSE : NOW), Veeva Systems Inc., (NYSE : VEEV), is one of the most important SaaS company in the world. In its Q4 2020 investor newsletter, Baron Funds mentioned Veeva Systems Inc. (NYSE VEEV). Here’s
“Veeva Systems Inc. provides cloud-based software solutions to
the life sciences industry. Its shares dipped during the quarter. Despite strong results in the third quarter, management suggested a more cautious outlook for 2021, which could have some negative consequences for its commercial business. The regulatory environment for key end-markets was also uncertain under the new presidential administration. We believe Veeva is well-positioned to take advantage of the ongoing digitalization efforts inthe life sciences industry.
12. Workday, Inc. (NASDAQ: WDAY)
Market Cap $56.2 billion
Workday, Inc. (NASDAQ : WDAY), an American software company, helps businesses manage their human resources, finances, strategy, data, and more. The company’s products include a variety of tools that are designed to assist in managing processes. Workday, Inc. (NASDAQ : WDAY), claims it stands out because it is free from the traditional ERP model, which is rigidly coded and not as flexible as the “workday Suite”.
Workday Suite offers flexibility and robustness through combining financial management, planning, and data analytics under one roof.
HubSpot, Inc., (NYSE HUBS), Slack Technologies, Inc., (NYSE WORK), Snowflake Inc., (NYSE NOW), Square, Inc., (NYSE : SQ), SAP SE, (NYSE : SAP), salesforce.com, Inc., (NYSE : CRM), Adobe Inc., (NASDAQ : ADBE), Microsoft Corporation, (NASDAQ : MSFT), Oracle Corporation, (NYSE : ORCL), Atlassian Corporation Plc, NASDAQ : TEAM), Workday,
“We have been strategically adding growth exposure
to the new issue market.” We took advantage the decline in disruptors, which make up a large part of the portfolio, to take a position in enterprise-software maker Workday.”
11. Atlassian Corporation Plc ( , NASDAQ: TEAM).
Market Cap $65.17 Billion
Atlassian Corporation Plc (NASDAQ : TEAM), an Australian software company, makes it possible for businesses and organizations to efficiently and effectively manage projects, facilitate intra-organization communications, protect data, and ensure that businesses reach their full potential.
Atlassian Corporation Plc (NASDAQ : TEAM), among its many cloud products, offers Jira Software and Jira Service Management. Confluence, Bitbucket and Trello are just a few of the offerings.
The Q2 2021 investor letters of Lakehouse Capital included the mention of Atlassian Corporation Plc (NASDAQ : TEAM). Here’s
” Atlassian is a situation where we don’t have much to offer. The Fund’s co-founder-led business is strong and has contributed positively to its performance throughout its life. The Fund realized a +209% total returns
on the position, but the position had a minimalimpact on fiscal 2021 performance. We exited the small position in October.
10. Twilio Inc. (NYSE: TWLO)
Market Cap $65.70 Billion
Twilio Inc. (NYSE : TWLO), an American cloud computing company, offers web application programming interfaces that allow businesses to communicate with both internal and external stakeholders. Twilio Inc. (NYSE : TWLO), offers software that facilitates multichannel communication. This has the added effect to enhance customer experience and, in turn, improves customer support. Twilio Inc. (NYSE : TWLO), a provider of communication solutions, has been trusted by over 172,000 businesses. Twilio Inc. (NYSE : TWLO) has a market capitalization in excess of $65.70billion
Slack Technologies, Inc., (NYSE HUBS), Snowflake Inc., (NYSE WORK), Square, Inc., (NYSE : SQ), SAP SE, (NYSE : SAP), salesforce.com, Inc., (NYSE : CRM), Adobe Inc., (NASDAQ: ADBE), Microsoft Corporation, (NASDAQ: MSFT), Oracle Corporation (NYSE : ORCL), Twilio Inc., (NYSE : TWLO), is one of the most important SaaS companies worldwide. Lakehouse Capital’s Q2
“The Fund had 20 positions at
the end of June, and exited four of them during the year (including Twilio). We sold almost all of the companies we exited on the basis that their valuations were stretched beyond their norms and to levels at which the return profile didn’t offer the asymmetric upside that drove us to invest. We don’t like selling on valuation because great growth companies are rare and letting winners rule is an important partof a winning growth strategy. However, we aren’t gluttons for punishment and in each case we redeployed capital toward other high-quality growth businesseswith less demanding valuations.
9. Snowflake Inc. ( , NYSE: SNOW).
Market Cap $74.26 Billion
ServiceNow, Inc., Zoom Video Communications, Inc., (NASDAQ: ZM), Square, Inc., (NYSE; SQ), SAP SE, (NYSE : SAP), salesforce.com, Inc., (NYSE : CRM), Adobe Inc., (NASDAQ : ADBE), Microsoft Corporation, (NASDAQ : MSFT), and Oracle Corporation (NYSE : ORCL), Snowflake Inc., (NYSE : SNOW), is one of the most important SaaS companies worldwide. RiverPark Funds mentioned Snowflake Inc. (NYSE : SNOW)
8. Zoom Video Communications, Inc. ( , NASDAQ: ZM).
Market Cap $106.65 Billion
Zoom Video Communications, Inc. (NASDAQ : ZM), made it possible for everything else to continue as before by providing a peer-to-peer cloud-based platform for video telephony, chat, and business telephone system. Zoom’s most trusted customers include ServiceNow, Inc., Atlassian Corporation Plc, Veeva Systems Inc. (NYSE VEEV), and many others.
Zoom Video Communications, Inc. (NASDAQ : ZM), generated revenues up to $2.7 Billion in 2021 and has a market capitalization exceeding $106.65 Billion.
7. Square, Inc. (NYSE: SQ)
Market Cap $108.15 billion
Square, Inc. (NYSE, SQ) is an American company that provides merchant services to businesses of all sizes. Square, Inc. (NYSE : SQ) offers
ServiceNow, Inc., Snowflake Inc., (NYSE NOW: SNOW), SAP SE, (NYSE : SAP), salesforce.com, Inc., (NYSE : CRM), Adobe Inc., (NASDAQ: ADBE), Microsoft Corporation, (NASDAQ: MSFT), Oracle Corporation (NYSE : ORCL), Square, Inc., (NYSE : SQ), is one of the most important SaaS companies worldwide.
6. ServiceNow, Inc. (NYSE: NOW)
Market Cap $109.85 Billion
ServiceNow, Inc. (NYSE NOW) provides cloud-based automation solutions to help enterprises automate repetitive and tedious tasks in order to improve organizational performance. ServiceNow, Inc. (NYSE NOW) allows digitization of intra-company workflows, which can result in cost savings and operational efficiency.
Their products cover a wide range of organizational operations, including IT Business Management, IT Operations Management, Dev Ops and Security Operations. ServiceNow, Inc. (NYSE NOW) has over 6000 customers, with 80% of them coming from the Fortune 500. ServiceNow, Inc.’s market capitalization (NYSE: NOW), is $109.85 billion, making it one of our 15 most valuable B2B SaaS businesses.
Square, Inc., Snowflake Inc., (NYSE : SNOW), SAP SE, (NYSE : SAP), salesforce.com, Inc., (NYSE : CRM), Adobe Inc., (NASDAQ: ADBE), Microsoft Corporation, (NASDAQ: MSFT), Oracle Corporation (NYSE : ORCL), ServiceNow, Inc., (NYSE : NOW), is one of the most important SaaS companies worldwide. In
“ServiceNow offers software solutions that can automate and structure large business processes. The company was founded in 2004 to help businesses manage their IT services. ServiceNow’s offering is different from other solutions on the market. It was built using modern architecture, which was modular, flexible, and user-friendly. It also left incumbents, such as BMC and IBM, playing catch-up.
As the company became a market leader, it saw an
opportunity to expand its offering to include IT Operations Management. This is the managementand control of the entire IT infrastructure of a business. Customers began to ask for the company’s expansion into other business workflows, such as HR Management and Customer Services. This was due toits success in improving productivity and user experiences in IT.
As the company became a market leader, it saw an
This was due to
Conclusion
Public SaaS companies are a great way to outsource your software needs.
Public SaaS companies work by providing access to software over the internet, which means you don’t have to worry about installing or maintaining anything on your own servers. Click To Tweet
This can be a huge benefit for businesses of all sizes, and there are plenty of public SaaS companies to choose from. However, there are also some risks associated with using them, so it’s important to understand what they are before making a decision.
