Computer programming is the process of designing and building an executable computer program for accomplishing specific computing task. Programming involves tasks such as: analysis, generating algorithms, profiling algorithms' accuracy and resource consumption, and the implementation of algorithms in a chosen programming language (commonly referred to as coding). The source code of a program is written in one or more languages that are intelligible to programmers, rather than machine code, which is directly executed by the central processing unit. The purpose of programming is to find a sequence of instructions that will automate the performance of a task (which can be as complex as an operating system) on a computer, often for solving a given problem. The process of programming thus often requires expertise in several different subjects, including knowledge of the application domain, specialized algorithms, and formal logic.Tasks accompanying and related to programming include: testing, debugging, source code maintenance, implementation of build systems, and management of derived artifacts, such as the machine code of computer programs. These might be considered part of the programming process, but often the term software development is used for this larger process with the term programming, implementation, or coding reserved for the actual writing of code. Software engineering combines engineering techniques with software development practices. Reverse engineering is the opposite process. A hacker is any skilled computer expert that uses their technical knowledge to overcome a problem, but it can also mean a security hacker in common language.
1 │ COVID-19 Impact on SaaS
COVID-19 Impact on SaaS Valuations & Transactions
May 2020
2 │ COVID-19 Impact on SaaS
Source: Pitchbook as of 5/21/2020
SaaS Continues to Outperform
Company
SaaS Sector
E-Commerce;
Marketing
Automation
Field Service; Supply
Chain Management
BI & Collaboration
Communications
IT / Infrastructure
Education Technology
Enterprise Value
$93.8B
$72.5B
$43.3B
$26.0B
$20.2B
$7.9B
Enterprise Value /
NTM Revenue
42.8x
16.7x
27.2x
17.1x
36.0x
14.5x
Date of 52-Week High
5/15/20
5/20/20
5/15/20
5/12/20
5/13/20
5/15/20
2020 Earnings
Guidance
Withdrew
Lowered
Lowered
Withdrew
Raised
Unchanged
Performance vs. S&P
500 Since 3/15/2020
+118%
+21%
+26%
+147%
+118%
+76%
Well-Positioned SaaS Businesses Continue to Thrive on the Public Markets
• Public market investors are flocking to quality assets in the SaaS space due to the de-risked nature of sticky recurring-revenue business
models
− As working and learning from home becomes the norm for the foreseeable future, many SaaS sectors have seen a tremendous
uptick in demand, including education technology, communications and collaboration, tele-health, and IT/infrastructure
− The rise of digital storefronts has increased the demand for e-Commerce and FinTech platforms such as Shopify, Square, and Amazon
− SaaS businesses that are a part of the “new normal” framework for a remote, digital workforce will likely continue to perform well
Despite global uncertainty, SaaS businesses continue to outperform the broader market and trade at historic
multiples of forward revenue
3 │ COVID-19 Impact on SaaS
Legacy Software Players are Left Behind
Company
Sector
ERP Solutions
Networking Solutions
BI and Analytics, IT
Infrastructure
Security
IT Infrastructure
Education Services &
Technology
Enterprise Value
$191.1B
$176.0B
$163.5B
$25.0B
$14.2B
$3.0B
Enterprise Value / NTM
Revenue
4.8x
3.6x
2.2x
1.0x
5.8x
1.7x
Date of 52-Week High
7/10/19
7/16/19
2/6/20
11/11/19
1/23/20
12/13/19
2020 Earnings Guidance
Unchanged
Unchanged
Withdrew
Unchanged
Withdrew
Unchanged