Unless you’ve been living under a rock, it’s hard not to notice that software-as-a-service (or SaaS) is one of the most popular business models in the world today.
The SaaS industry is forecast to generate $157 billion by 2022 and at least 100 SaaS companies are expected to top $1 billion in ARR. In a highly competitive space, only the best will stand out. Here is a list of the top 25 SaaS companies in the world.
This list features the highest revenue-generating SaaS companies as well as the fastest-growing startups.
Google is more than just a search engine. G Suite (formerly Google Apps) is a collection of tools developed by Google. G Suite includes Gmail for email service, Docs for document creation, Drive for cloud storage, Calendar for time-management and more. Anyone with a Google account can use these services for free. However, more than 4 million businesses are paying for additional features that include unlimited cloud storage and 24/7 phone support. Google’s G Suite has earnings of more than $1 billion per quarter, which make it one of the largest software-as-a-service companies in the world.
Adobe has successfully transformed its business from a software license business into a cloud-based business. Adobe Creative Cloud is a set of cloud applications for graphic design, video editing, photography, web design and more. There are more than 2 million individuals and organizations paying subscription fees to use Adobe applications like Photoshop, Illustrator, After Effect, Premiere, InDesign and more. Creative Cloud subscribers account for more than $5 billion in annual recurring revenue. In addition to Creative Cloud, Adobe makes tools used for digital marketing. Adobe Marketing Cloud is used by most Fortune 50 companies, including all of the top commercial banks, media companies, and auto manufacturers.
Microsoft is the world’s largest provider of enterprise software-as-a-service solutions. Microsoft has a number of cloud-based solutions to create bundles that appeal to corporations, including Azure with Office 365, Dynamics, and other services. For example, Microsoft 365 combines Office 365, Windows 10, and Enterprise Mobility & Security. Microsoft 365 is a multi-billion dollar business bringing in $29 billion a year. There are more than 135 million business users of Office 365 and over 200 million Windows 10 business devices in use.
Oracle is one of the world’s leading software-as-a-service providers. Oracle Cloud offers a wide range of cloud-based applications, including Enterprise Resource Planning Cloud, Human Capital Management Cloud, Customer Experience Cloud, Enterprise Performance Management Cloud, Supply Chain Management Cloud, and more. Oracle’s cloud services bring in more than $6 billion in revenue. They have over 420,000 customers, including all of the Fortune 100.
Salesforce is without a doubt a pioneer of the cloud-based software industry. Salesforce has been selling cloud-based customer relationship management software for almost 20 years. The company’s flagship product, Sales Cloud, helps sales executives manage their interactions with prospects until they become customers. In addition to CRM software, Salesforce also sells social networking applications for acquisition and internal development. In 2017, Salesforce brought in more than $8 billion in revenue. They currently have over 3 million subscribers.
Workday provides enterprise cloud-based applications for human capital management (HCM), financial management, payroll, recruiting, learning, planning, and more. Workday HCM gives organizations a single user-friendly system to deal with the lifecycle of a worker from hire to termination. The company has more than 2,000 customers and boasts a 98% customer satisfaction rating. Workday’s annual revenue for 2018 was $2.1 billion, which was up 36.1% from 2017.
SAP offers cloud-based apps for all lines of business. The 46-year-old German software maker has done a masterful job of embracing the software-as-a-service business model to keep up with the times. SAP expects revenue from its cloud offerings to make up 70% to 75% of total revenue by 2020. The company’s cloud offerings include enterprise resource planning, procurement, analytics, customer relationship management, supply chain, human resources, and financial management. In 2018, SAP expects its cloud offerings to generate more than €5 billion in revenue.
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Intuit has successfully shifted its business model from selling licensed software to software-as-a-service. Unlike the other companies on this list, Intuit is focused on helping the little guy. Intuit’s flagship products, QuickBooks and TurboTax, are focused on helping over 42 million customers manage their small businesses, accounting, payroll and personal finance. Intuit reported annual revenue earnings of $5.964 billion in 2018, which is up 15.2% from 2017.
Dropbox is a leading online storage provider for consumers and businesses. With a Dropbox account, you can manage and share files across teams and devices. Dropbox is free, but paid subscriptions offer additional features and more storage. Dropbox has more than 500 million registered users on its platform, which includes 12.3 million paying customers. In 2018, the cloud storage giant expects total revenue to reach $1.37 billion. It’s also important to note that Dropbox raised $756 million when it went public with an IPO in March of 2018.
LogMeIn is making it easy for people around the world to connect with each other. They provide cloud-based solutions for communication & conferencing, customer engagement & support, and identity & access. For example: Businesses and IT workers use LogMeIn’s solutions to provide remote management and support. Remote workers can also use LogMeIn’s solutions to access their computer’s desktop, files, and applications. With so many use cases, it’s no surprise LogMeIn has millions of customers in virtually every country around the world. The company’s total revenue is expected to be $1.2 billion in 2018.
ServiceNow streamlines IT systems with enterprise automation solutions. Their cloud offerings include IT Service Management (ITSM), IT Operations Management (ITOM) and IT Business Management (ITBM). As you can see, most of ServiceNow’s cloud offerings are geared towards IT. However, ServiceNow isn’t a one-trick pony. Their cloud offerings also include Human Resources (HR), Customer Service, and Security Operations. ServiceNow’s software-as-a-service suite appeals to enterprises looking for a one-stop-shop, which is one reason why they have more than 5,000 enterprise customers. In 2018, ServiceNow’s total revenue is expected to be more than $2 billion.
The Ultimate Software Group
The Ultimate Software Group is a growing cloud provider of human capital management solutions. The company’s UltiPro product suite covers every department of business, including human resources, payroll, tax management and more. Their solutions literally manage employee’s complete lifecycle from recruitment to retirement. The Ultimate Software Group generates revenue from subscription fees and support. Ultimate has over 4,500 customers. In 2018, the company is expected to surpass $1 billion in total revenue.
Splunk is the global leader in operational intelligence software. Its ground-breaking software platform turns machine-generated big data into useful information, so it can be used for graphs, reports, alerts, dashboards, and visualizations. They have over 15,000 customers, including more than 85 of the Fortune 100 companies. Their revenue soared to $1.271 billion in 2018, which is up 34% from 2017. Splunk’s growth comes from adding new enterprise customers and existing customers expanding their use of its platform with newer data analytics and machine-learning features.
Shopify is the number one e-commerce platform in the world. They provide the hosting, storefront, and shopping cart for more than 600,000 businesses online. Shopify makes money from subscription fees and processing transactions. The company’s revenue has increased by over 50% in the past year. With growth like that, it’s no wonder their revenue is expected to be more than $1 billion.
HubSpot is a cloud-based company that sells inbound marketing and sales software. HubSpot helps more than 50,000 businesses find, nurture, and manage customers. The company’s total customer base has increased 40% over the last year. HubSpot’s flagship products, Marketing Hub and Sales Hub bring in about $10,000 per customer. If HubSpot can continue generating growth and revenue at this pace, it’ll remain one of the top software-as-a-service companies for years to come.
Zoom is a cloud-based video communications platform that enterprises rely on for video conferencing, instant messaging, and webinars. According to the company’s website, over 750,000 companies around the world use Zoom to conduct day-to-day business. Zoom is giving other leaders in this category like Cisco and Microsoft a serious run for their money. In January 2017, Zoom raised $100 million from Sequoia Capital at a $1 billion valuation. Zoom doesn’t disclose financial details, but the company revealed that its year-over-year revenue grew by 150% in 2017.
Atlassian sells a number of cloud-based products that help teams work better together. They provide collaboration, development, and issue tracking software for over 125,000 customers. Unlike the other companies on this list, Atlassian doesn’t have a traditional sales team. Atlassian relies on word-of-mouth and viral marketing techniques to land new customers, which is impressive because its customers include 85 of the Fortune 100. Atlassian’s annual revenue was $874.0 million in 2018, which was up 41% from $619.9 million in 2017.
Veeva Systems makes cloud applications for the pharmaceutical and life sciences industries. Their products help companies manage customer relationships, content, and data. Veeva ended 2018 with 625 customers, which increased from 517 in 2017. The company also added 2 of the top 10 pharmaceutical companies as clients. Veeva’s total revenue was $685.6 million in 2018, which was up 26% year-over-year. $554.4 million of Veeva’s total revenue was from cloud-based products, which increased by 28% year-over-year.
MailChimp is a cloud-based email marketing solution that helps you to create and manage mailing lists, newsletters, automated campaigns, and more. Best of all, you can integrate contacts from your CRM into MailChimp to send personalized emails that nurture your prospects. It also integrates with Google Analytics and other popular services. The platform is stable, consistent, and reliable. It has over 20 million users and sends out over 1 billion emails a day. Oh, and by the way, it generates $600 million in revenue.
Zendesk is a cloud-based customer service platform. The company gives businesses the ability to track, prioritize, and solve customer support tickets. It allows organizations to take care of customer support across multiple channels like email, phone, chat, and social media all in one place. Zendesk services more than 125,000 paid customer accounts around the world. They’re expected to bring in more than $500 million in revenue in 2018, which is an increase of over 30% from 2017.
New Relic makes it easy to monitor, troubleshoot, and scale web applications. It provides full-service Application Performance Management (APM) as a software-as-a-service. They have over 17,000 customers. Their customers range from startups to global Fortune 500 companies. Over 700 of their customers spend more than $100,000 on the company’s platform. In 2018, New Relic made $355.1 million in revenue. That’s a 35% increase from 2017.
Eventbrite is a cloud-based application that makes it easy for anyone to find, create and manage an event. The company provides everything you need to put on a great live event, including ticket sales, promotion tools, payment processing and analytics. The company gets paid a fee every time a ticket is sold on its platform. In 2017, Eventbrite served over 700,000 event organizers who sold 203 million tickets. The online ticketing platform earned $202 million in revenue from these ticket sales, which was up 51% from 2016.
SurveyMonkey is a software-as-a-service company that specializes in online surveys. The company allows users to create customizable surveys to get feedback from customers, employees and others. With a range of free and paid pricing options, SurveyMonkey has amassed over 25 million registered users. In 2017, the company brought in $218.8 million in revenue. In 2018, they raised $100 million in an IPO.
Zuora powers the subscription economy. They design cloud-based applications to automate billing, commerce, and finance operations. The company has about 1,000 customers spread across 30 countries, including several big enterprises like Zillow, HBO, Box, Ford, TripAdvisor and Nvidia. This year Zuora will process more than 150 million payment transactions on behalf of its customers. In April 2018, Zuora raised $154 Million with an IPO and entered the market at a $1.4 billion valuation.
Intercom provides cloud-based solutions that help companies interact with potential and existing customers. Intercom’s software-as-a-service offerings include a number of messaging apps for sales, marketing and support. Their platform powers more than 500 million conversations per month. They have more than 25,000 customers in 117 countries. Their customers include Shopify, New Relic and Atlassian. In 2018, Intercom raised $125 million led by Kleiner Perkins and Google Ventures on a $1.275 billion valuation, which gives the company unicorn status. They will use the extra funds to further expand their business.
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