o’shares strategy series · worldwide cloud application services forecasted revenue (saas)...
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O ’ S H A R E S S T R A T E G Y S E R I E SNOVEMBER 2019
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Even amid fears over trade wars dampening China’s economic growth, Alibaba has set another record for its one dayonline sales event, Singles Day. The equivalent shopping events in the U.S. are Black Friday and Cyber Monday. Alibabagenerates more sales from Singles Day than both U.S. shopping events combined. 2019 sales eclipsed $38 billion, anincrease of 24% from the previous record set in 2018.
New Singles Day Sales Record for Alibaba
Source: Bloomberg Finance L.P. Performance data as of 10/31/2019. Forbes, “Singles' Day Sets Another Sales Record.”CNBC, “Alibaba breaks Singles Day record with more than $38 billion in sales.”For informational purposes only. Not meant to represent the Fund.
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Singles Day - Gross Merchandise Value (GMV)
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O ’ S H A R E S S T R A T E G Y S E R I E SNOVEMBER 2019
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O ’ S H A R E S S T R A T E G Y S E R I E SOCTOBER 2019
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Cloud technology has increased workplace productivity, facilitating global communications between colleagues and byproviding efficient and flexible solutions for data management and accounting. These 3 cloud based companies haveexperienced strong growth over the past year and are forecasted to continue growing at over 20%.
Zoom Video Communications: Cloud-based communications platform combining a number of workplace productivity toolssuch as video conferencing, internet calling and webinars.
• Partnership with Verizon to market Zoom services to existing clients• Customers include: Uber, 21st Century Fox, Delta and Anheuser-Busch
Avalara: Web-based solution to manage sales tax processes by integrating accounting and business applications.• 25,000+ companies globally from independent operators, midsize businesses and Fortune 100 companies• Customers include: New York Times, Bed Bath & Beyond and Adidas
Xero: Online accounting system featuring bank transaction reporting, cashbook, general ledger, invoicing, financialreporting, etc.
• Partnerships with over 100 banks globally allowing direct transaction feeds into their accounting system: WellsFargo (U.S.), HSBC (Asia) and CIBC (Canada)
• Over 1.8 million global subscribers
B2B Cloud Services: 3 Fast Growing Companies
Source: Bloomberg. Data as of 08/30/2019. Zoom customers from www.zoom.us. Zoom partnership announcement from Seeking Alpha. Xero number of subscribers and banking partners from www.xero.com. Avalara customers from http://www.avalara.com. FY: Fiscal Year. 1FY: Forward 1 Fiscal Year, 2FY: Forward 2 Fiscal Years. TTM: Trailing 12 Months. For informational purposes only. Does not represent the Fund. It is impossible to predict future revenues and actual results may vary.
Country U.S. U.S. New ZealandMarket Cap ($ Billion) $25.0 $6.4 $6.0
Revenue ($ Million)Last FY $330.5 $272.1 $376.51FY Est. $589.4 $365.2 $459.22FY Est. $825.7 $455.9 $580.9
Revenue Growth (%)TTM 104.8% 27.7% 35.9%Avg 1FY & 2FY 59.2% 29.5% 24.2%
O ’ S H A R E S S T R A T E G Y S E R I E SAUGUST 2019
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Worldwide Cloud Application Services Forecasted Revenue (SaaS)
Worldwide Cloud Application Services (SaaS), $80 Billion Market
The above charts are for informational purposes only, includes the estimated growth of a certain sector and does not representthe O’Shares ETFs. It is impossible to predict future growth and actual results may vary. Potential growth or decline is not guaranteed and does not represent the performance of the Fund. Source: Worldwide Cloud Services revenue from Gartner. Top Companies from The Software Report. Market-Cap, Revenue and Revenue Growth from Bloomberg, data as of 7/31/2019. Forward Revenue Growth includes average of 1Y and 2Y forward revenue growth. FY: Fiscal Year.
§ Cloud Application Services (SaaS): Software-as-a-Service is a software licensing model where access is provided on a subscription basis via the internet. SaaS companies create, develop, host and update the product from one central location.
§ Strong Growth Forecasts: Worldwide SaaS revenue totaled $80 billion in 2018 and is forecasted to reach $144 billion by 2022, a growth rate of ~80%.
§ Top 10 Companies: The top 10 had a combined revenue of ~$26 billion as of their last fiscal year, which would have accounted for nearly one-third of the global market in 2018.
79.6%
Name Country Market-Cap ($ B)
Revenue Last FY ($ B)
Forward Revenue Growth
salesforce.com US $120.3 $13.3 22.1%ServiceNow US $51.5 $2.6 30.6%Workday US $45.2 $2.8 25.0%Shopify CA $35.9 $1.1 38.3%Atlassian US $33.8 $1.2 27.6%Veeva Systems US $24.4 $0.9 20.2%Splunk US $20.3 $1.8 23.7%Twilio US $18.7 $0.7 52.4%Tableau Software US $14.8 $1.2 19.1%RingCentral US $11.6 $0.7 26.5%
Top 10 SaaS Companies
Related Content: Internet & E-commerce
Worldwide Cloud Application Services (SaaS), $80 Billion Market
B2B Cloud Services: 3 Fast Growing Companies
O ’ S H A R E S S T R A T E G Y S E R I E SSEPTEMBER 2019
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Atlassian: Develops software for project tracking, collaboration, communication, service management and software development• 85% of Fortune 100 companies use an Atlassian product• Customers include, Airbnb, NASA, Cisco and Toyota
Twilio: Cloud computing platform allowing developers to integrate voice and text communications into web and mobile applications
• 150,000+ applications, from startups to global enterprises have been built with Twilio• Customers include, Nordstorm, Uber and WhatsApp
MongoDB: General purpose database platform for application developers• The MongoDB database platform has been downloaded over 60 million times• Customers include, Facebook, Google, eBay and Verizon
Cloud Disruptors: The Next Internet Giants?
Market Cap ($ B) $33.8 $18.7 $7.9
Revenue ($ Million)
2017 $619.9 $399.0 $101.4
2018 $881.0 $650.1 $166.0
2019e $1,210.1 $1,117.1 $267.0
2020e $1,554.2 $1,485.2 $381.9
Revenue Growth (%)
Last FY 42.1% 62.9% 63.8%
Avg 1Y & 2Y 32.9% 52.4% 51.9%
Source: MongoDB 2019 revenue is actual as of fiscal year ended 1/31/2019. MongoDB Downloads from MongoDB website. Number of Twilio Applications from Twilio website. Percentage of Fortune 100 companies using Atlassian from DMR website. Atlassian 2019 Revenue is actual as of fiscal year ended 6/30/2019. All other data from Bloomberg, data as of 7/31/2019. For informational purposes only. Does not represent the Fund. It is impossible to predict future revenues and actual results may vary.
Cloud Disruptors: The Next Internet Giants?