Sprout Social IPO’d in Dec 2019 at an $800m market cap
It IPO’d early, in a crowded space. But they kept on going, and gong, and growing.
2.5 years later, in a market down 50% …
They’re worth $2.7 Billion#golong pic.twitter.com/nA8jSXgehx
— Jason
BeKind
The markets for SaaS and Cloud stocks are down 50%+ in just a few months, and it hasn’t spared even the leaders.
But let’s step back a bit … the damage hasn’t been even, and capital-efficient SaaS stocks in many cases have held up pretty well.
A few case studies:
* Sprout Social IPO’d in December 2019 at an $800m market-cap. It’s PLG-assisted sales motion has kept it capital efficient, and today it’s worth $2.7 Billion.
* ZoomInfo was the first post-Covid IPO in June 2020, and it priced at $8.3 Billion. It went on to accelerate its profitable growth and today sits at a $16 Billion market cap.
Now all these stocks were even higher at the 2021 peaks. It’s just, efficient growth is still in fashion, and while below all-time peaks, they are still at impressive valuations from just 24 months ago.
I’m not saying it’s easy out there right now. The markets are brutal.
But some are still shining fairly bright. And likely have a great run ahead of them.
The post Some SaaS Stocks Are Actually Still Doing Pretty Well appeared first on SaaStr.
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Jason Lemkin, Khareem Sudlow
