2017

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General and Administrative 2017, The Softletter Benchmark 53

About the Softletter Benchmark 53 We have completely revamped our Benchmark 50, now the Benchmark 53, to reflect the profound changes the software industry has undergone over the last several years. The profiled are now broken into eight segments that provide a representative overview of industry trends and performance. The Softletter Benchmark 53 are all publicly-held companies and most of our basic business metrics are derived from documents these companies are legally required to provide to investors. When we believe circumstances warrant it, we do adjust these numbers to reflect financial reality. Please note that in June we will update these

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Operating Income 2017, The Softletter Benchmark 53

The Softletter Benchmark 53 are all publicly-held companies and most of our basic business metrics are derived from documents these companies are legally required to provide to investors. In most cases these are 10-Ks and equivalents, supplemented by expert analysis of the numbers. Operating Income (OI) is a derivative metric designed to measure how efficiently a company runs it operations. It is calculated by subtracting EBIT (Earnings Before Interest and Taxes) from revenue.  The numbers are most  valuable when comparing companies of a similar type or peer group, something the Benchmark 53 is designed to do. OI is frequently used by investment

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Windows 10 S: The End of Free Range Software

Microsoft wants this on your plate but not in your computer The high-tech industry is full of people opposed to GMOs and in favor of free range chickens, but when it comes to software, putting code in cages is currently all the rage. What we tend to think of as the modern software industry started in the 70s with the introduction of such units as the Apple II, Commodore PET,  Atari, Radio Shack’s Tandy systems and others. Software was sold to the masses in a physical package that typically consisted of a box, documentation, and the software itself, which was

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Revenue Per Employee 2017, The Softletter Benchmark 53, Executive Summary

The Softletter Benchmark 53 are all publicly-held companies and most of our basic business metrics are derived from documents these companies are legally required to provide to investors. To see the complete Softletter Revenue Per Employee 2017 analysis, please subscribe to Softletter. Below are listed the current members of the Softletter Benchmark 53. This list is periodically updated to reflect changes in company status and viability. The Big Four Microsoft Google Apple Oracle SaaS Sales and Marketing Endurance (Constant Contact) Marketo Netsuite Salesforce HubSpot Cvent LivePerson SaaS Enterprise Workday Zendesk Veeva Demandware ServiceNow Benefit Focus LogMeIn SaaS B2B/C Verticals Angie’s List

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Shaun Russell Rocks SaaS Product Management Like It’s 1999

Shaun Russell Goes Future to the Back A few weeks ago  I received a mailing from, I think, the BPMA (Boston Product Management Association) whose main headline was a link to a video entitled Things Nobody Told Me About Being a Product Manager given by a nice looking fellow of the name Shaun Russell, who, judging by his accent, is of British extraction and is currently a PM at an online website called the Outfittery. The website’s SaaS business model is based around consulting with an online stylist who periodically sends you clothing they’ve picked out for you best on

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Revenue Per Employee 2017, The Softletter Benchmark 53 (Softletter subscriber access)

The Softletter Benchmark 53 are all publicly-held companies and most of our basic business metrics are derived from documents these companies are legally required to provide to investors. In most cases these are 10-Ks and equivalents, supplemented by expert analysis of the numbers. Revenue per Employee is one of the most popular financial metrics by which to measure a software company’s performance. RPE is indeed a useful productivity benchmark, but several caveats apply. One is that a healthy RPE does not necessarily translate to a dynamic, growing company. That’s why despite its relatively handsome RPE, Microsoft stock has not excited anyone

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Operating Income per Employee 2017, The Softletter Benchmark 53

About the Softletter Benchmark 53 We have completely revamped our Benchmark 50, now the Benchmark 53, to reflect the profound changes the software industry has undergone over the last several years. The profiled are now broken into eight segments that provide a representative overview of industry trends and performance. The Softletter Benchmark 53 are all publicly-held companies and most of our basic business metrics are derived from documents these companies are legally required to provide to investors. When we believe circumstances warrant it, we do adjust these numbers to reflect financial reality. Please note that in June we will begin to

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Pollfish: The App as Channel

Pollfish: Is that Smartphone a Channel in Your Pocket or Do You Just Want to Ask Me Something?     Calm down, California. You’ll get over this. Someday Unless you were sealed in a time capsule circa 2000 alongside your Nokia 3390 (dig that 459-character text limit. Wish Twitter did that) you’ve heard of apps. While Apple didn’t create the app, it did create the app market and infrastructure, which has been a runaway commercial success, adding in total about $60B to its bottom line. Apps are first cousins to SaaS systems, though they differ in a couple of significant

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Days Sales Outstanding 2017, The Softletter Benchmark 53

The Softletter Benchmark 53 are all publicly-held companies and most of our basic business metrics are derived from documents these companies are legally required to provide to investors. (BTW, if you wondering why the report is showing 2015 results in 2017, the answer is that complete fiscal results for 2016 will only be available in the latter half of 2016 because some of our Benchmark 53 companies have fiscal calendars that run from June to June.) Below are listed the current members of the Softletter Benchmark 53. This list is periodically updated to reflect changes in company status and viability. The

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Research and Development 2017, The Softletter Benchmark 53

The Softletter Benchmark 53 are all publicly-held companies and most of our basic business metrics are derived from documents these companies are legally required to provide to investors. (BTW, if you wondering why the report is showing 2015 results in 2017, the answer is that complete fiscal results for 2016 will only be available in the latter half of 2016 because some of our Benchmark 53 companies have fiscal calendars that run from June to June.) We have completely revamped our Benchmark 50, now the Benchmark 53, to reflect the profound changes the software industry has undergone over the last several

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