“At a price of about 20x its expected revenue in 2018 of about $400 million, the acquisition was unusually splashy for SAP; the CEO behind the deal, Bill McDermott announced his departure a few months later, insisting it was unrelated to activist investor Elliot Management taking a 1% stake in the company in the interim.
“More recently, Qualtrics has been seen by some analysts as one of the bright spots of SAP’s business, which has faced headwinds as companies grapple with the consequences of the spread of the Covid-19 pandemic. In a July 24 report, Cowen analyst J. Derrick Wood noted that a survey of 60 global SAP partner found that about three-quarters had missed their second-quarter sales targets as buyers delayed decisions and reduced the scope of certain projects. That’s especially hit business units like Concur, another former acquisition that makes travel and business expense software.
“But as businesses sell more online and need to track customers and employees remotely, SAP’s e-commerce units and Qualtrics have proven bright spots…”
“Once a buzzy expected IPO, will the public market embrace Qualtrics on a second go around? The company reported revenue of 161 million Euros, or about $188 million, for Q1 2020; when SAP reports earnings on Monday, analysts and potential investors will get to see the first full year-to-year quarterly results for the business, which said last quarter it had 11,600 customers and was not GAAP profitable.
“Medallia, another company that tracks customer engagement and experiences with online survey roots, reported revenue of $112.7 million in its last quarter, growth of 20%, and trades at a market capitalization of $4.2 billion, down 30% from its July 2019 high.”
(https://www.forbes.com/sites/alexkonrad/2020/07/26/sap-plans-to-spin-out-qualtrics-for-ipo)
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