CGES Index

CGES Index

Introduction to CGES Index

Cornerstone Global Enterprise SaaS (CGES) Index - a financial index of Top 30 emerging global Enterprise SaaS companies listed on stock exchanges. The index constituents have been carefully chosen to ensure balanced sectoral and market cap representation. This is a first of it’s kind initiative taken up by an Indian investor, in order to help create better awareness of these investment models in this ecosystem.

A one-of-its kind index, CGES is specifically designed to track the performance of the new breed of highly scalable companies that operate on the SaaS or SaaS-based business model. Even within SaaS, CGES Index is squarely focused only on the pure-play Enterprise (B2B) SaaS companies and does not include Consumer (B2C) SaaS companies like Netflix, Dropbox, etc.

The base value of the CGES Index was pegged at 1,000 as on 1st Jan 2019 (the base date).

Performance of CGES Index

CGES Index Constituents

Sr No Index Constituent Segment Description Index Weight
1 Adobe Core Operations Platform Products for digital content designing, managing and collaborating; Ecommerce platform for creating & managing omni-channel store-fronts 16.3%
2 Alteryx BI & Data Analytics Self-service data analytics software 0.3%
3 Appian Process Automation Low-code PaaS for building enterprise software applications, automations and business process management 0.4%
4 Atlassian Enterprise Collaboration Products for software developers for improving software development, project management, collaboration, and code quality. 5.9%
5 BigCommerce Holdings Core Operations Platform SaaS platform for cross-channel commerce targeted at SMB retailers 0.2%
6 Ceridian HCM Holding Support Functions Platform Enterprise grade Human Resource Management (HRM) software 1.0%
7 Change Healthcare Core Operations Platform Revenue and payment cycle management software for healthcare industry 0.4%
8 Coupa Software Support Functions Platform Cloud-based business spend management (BSM) platform 1.0%
9 Crowdstrike Holdings IT Infra & Security Management Cloud-delivered cyber security solution for the endpoint protection 3.4%
10 Datadog IT Infra & Security Management SaaS-based monitoring platform for cloud applications 2.7%
11 DocuSign Support Functions Platform Digital transaction management (DTM) platform for managing documented business transactions 3.0%
12 Duck Creek Technologies Core Operations Platform Enterprise P&C Insurance Software 0.3%
13 Dynatrace BI & Data Analytics Software intelligence platform for the enterprise cloud 1.2%
14 Fastly IT Infra & Security Management Real-time content delivery network (CDN) for delivery, security, streaming media, e-commerce and private CDN 0.3%
15 HubSpot Sales, Marketing & CRM Cloud-based marketing and sales software platform 1.9%
16 MongoDB IT Infra & Security Management Source-available cross-platform document-oriented database program 1.9%
17 Q2 Holdings Core Operations Platform Cloud-based digital banking solutions for financial institutions 0.3%
18 Salesforce Sales, Marketing & CRM End to end cloud-based Customer Relationship Management (CRM) software 16.0%
19 ServiceNow Process Automation Enterprise cloud-based services that automate workflow within and between departments in an enterprise 7.4%
20 Shopify Core Operations Platform An easy to use online store builder that helps retailers to sell online, on social media or in person 10.0%
21 Snowflake BI & Data Analytics Cloud data platform enabling customers to drive business insights, build data-driven applications and share data 5.4%
22 Splunk BI & Data Analytics Business Intelligence platform that enables enterprises to store, review and analyze data effectively and efficiently 1.4%
23 Sprout Social Sales, Marketing & CRM Deep social media listening and analytics, social management and advocacy solutions to brands and agencies 0.4%
24 Twilio Sales, Marketing & CRM Programmatic communications platform for software developers using service APIs 3.4%
25 UiPath Process Automation Robotic Process Automation and Enterprise Workflow Automation platform 1.6%
26 Unity Software Core Operations Platform The Company offers graphic tools to create, run, and monetize real-time 2D and 3D content 2.1%
27 Veeva Systems Core Operations Platform Cloud-based ERP solutions for the global life sciences industry 2.6%
28 Workday Support Functions Platform Enterprise cloud applications for finance and human resources 3.7%
29 Zendesk Sales, Marketing & CRM Cloud-based CRM and contact centre solutions 0.8%
30 Zoom Video Communications Enterprise Collaboration Video-first communication platform and web conferencing services 4.7%
+ View More
* Index constituent weightage as of 1st Oct 2021
Disclaimer : All data presented is as per our internal research and analysis leveraging publicly available data and is being presented only for academic deliberation and discussion purposes and is not to be viewed as any specific commentary / recommendation / evaluation / conclusion on any of the companies / stocks that are directly or indirectly part of the CGES Index.

Introduction to SaaS Metrics

SaaS companies have certain unique characteristics that are popularly called the SaaS Economics. These are difficult to be captured by the traditional financial & operational metrics, hence we use several specifically designed indicators to best assess the health and growth potential of Enterprise SaaS companies. We call them the “SaaS Metrics”.

Considering the nuances of business model of the constituents of CGES Index, we have divided them across two Cohorts for better representation of metrics:

Self-serve Enterprise SaaS

These are classic SaaS products like Slack, Zoom, Hubspot, etc. that a customer can sign-up and start using immediately. They are typically priced on PUPM (per user per month) basis with average pricing in the range of $10,000 per enterprise per annum.

Serviced Enterprise SaaS

These are core platforms that require integrations with existing enterprise software to function seamlessly, like Dynatrace, Five9, Salesforce, etc. These products are priced either basis PUPM or LPA (license fee per annum) depending on the complexity of the solution. The typical pricing per enterprise works out to be above $100,000 per annum.

SaaS Metrics

01
ARR Growth
Measure of absolute growth in Annualized Recurring Revenue
Self-serve SaaS
Serviced SaaS
02
EV/ARR Ratio
Enterprise Valuation as a multiple of the ARR
Self-serve SaaS
Serviced SaaS
03
ARPA
Measure of impact-scale of a product as Average Revenue per Account
Self-serve SaaS
Serviced SaaS
04
NER
Measure of product stickiness via revenue growth from existing customers
Self-serve SaaS
Serviced SaaS
05
MRV
Measure of revenue visibility in terms of the no of months’ worth of contracted revenue
Self-serve SaaS
Serviced SaaS
06
DSDE
Measure of operational efficiency as Dollars Spent for every Dollar Earned
Self-serve SaaS
Serviced SaaS
07
SER
Measure of sales efficiency as revenue generated for every dollar spent on sales & marketing
Self-serve SaaS
Serviced SaaS

Disclaimer :

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Any information provided on this website or any of the other digital assets owned & maintained by Cornerstone Venture Partners Fund, Mumbai, India (“CSVP”) and managed by the Investment Manager, Cornerstone Ventures Investment Advisers LLP, Mumbai India, does not constitute investment advice or investment recommendation nor does it constitute an offer to buy or sell or a solicitation of an offer to buy or sell shares or units in any of the investment funds or other financial instruments.

The Cornerstone Global Enterprise SaaS Index (“CGES Index”) ™ is a trademark of CSVP. The CGES Index is created & maintained using a proprietary algorithm and is to be used for informational purpose only. It is not to be construed as an investment advice or investment recommendation in any of the constituent companies / stocks that are directly or indirectly part of the Index. The Index is created using publicly available data published on the websites of the respective companies. All data presented is as per our internal research and analysis leveraging publicly available data and is being presented only for academic deliberation and discussion purposes and is not to be viewed as any specific commentary / recommendation / evaluation / conclusion on any of the companies / stocks that are directly or indirectly part of the CGES Index.

CSVP also analyses, maintains, and publishes certain financial and non-financial metrics (“SaaS Metrics”) on the Index at an aggregate level, and not at a specific company / stock level that constitute the CGES Index. These SaaS Metrics are provided purely for informational purpose and CSVP assumes no liability for accuracy, suitability, or completeness of the SaaS Metrics. The SaaS Metrics are created using publicly available third-party information and CSVP does not claim any ownership of the sourced data. CSVP is not responsible for the accuracy, suitability or completeness of the information originally disclosed by the owner of the information and any information provided herein. CSVP accepts no liability and offer no guarantee as to whether the information is up to date, correct or complete.

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