Software,Two-Thirds of Deloitte Fast 500

Deloitte released their list of the 500 fastest growing technology companies for 2018. Some great graphics/charts here:…

Key Takeaways which shouldn’t be a big surprise to most of us on this board:

  • 64% of the top 500 fastest growing tech companies are Software companies!

  • Of the Software category, nearly 50% of those are either SaaS, Cloud, or Data Anayltics businesses

  • 70% of the top 500 are private companies so unable for us to invest right now, but that still leaves about 150 on the list that are publicly listed.

The companies at the top of the list have mind blowing percentages, several of them up +20,000%, with the top one up more than +77,000%. I think the percentages might be three year cumulative growth %'s (see below) but still ridiculously impressive. I’m sure most of those at the top are very small, private companies. I actually don’t recognize most of the top 100, but many of our companies show up in the middle of the list:

#168 Trade Desk
#191 Nutanix
#197 Pure Storage
#206 Hortonworks
#211 New Relic
#250 Cloudera
#255 Twilio
#322 Alteryx
#336 Zscaler
#427 Arista Networks

I’m sure I missed a few others by scanning the list quickly. I imagine many of those companies were much higher up the list in years past when they were earlier stage and private.

Also interesting to see some huge companies (Facebook at #350) still hanging with the smaller growth companies.

According to the graphic, 6 of the top 20 are public companies, all of which must have growth over 6,000% (since that is where #20 is). I don’t recognize them so we’ll need to do some research to figure out who they are and whether how investment-worthy they might be (are their growth rates still accelerating?, etc).

If I’m reading the eligibility requirements correctly, I think the growth percentages they are showing are three year growth (so not a single annual % increase), fiscal 2017 vs fiscal 2014:

To be eligible for Deloitte’s Technology Fast 500 awards North America recognition, companies must:

-Be in business for a minimum of four years
-Be headquartered within North America
-Have fiscal year 2015 operating revenues of at least $50,000 USD
-Have fiscal year 2018 operating revenues of at least $5 million USD
-A growth rate of 75 percentage or greater (percentage revenue growth is computed as [(FY’17 rev. - FY’14 rev.) / FY’14 rev.] x 100)
-Own proprietary intellectual property or proprietary technology (it must be sold to customers in -products or services that contribute to a majority of the company’s operating revenues)

Companies must also fall within one of the following industry categories:

-Digital content/media/entertainment
-Digital platforms
-Electronic devices/hardware
-Energy tech
-Medical devices

Some interesting candidates on here worth researching.