Epicor CEO Steve Murphy details the company's financial breakdown between recurring revenue and pure-play SaaS cloud revenue.
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“So I'd say we're about 70% recurring, so we'll say 700,000,006 75 is recurring, and I'd say at around 300 to three 50 we're clearly we've crossed the saturation point sass.”
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More from Steve Murphy
PredictionNot checkable as stated
Murphy: Many SaaS companies trading at 60x ARR will disappoint investors
“Also true that a lot of these companies won't live up to it, and it'll take a year or two before people realize, hey, you know, they're nowhere close to being worth what we thought.”
Steve MurphyMar 10, 2021▶ 11:51Epicor Targets $1b Run Rate, 50% Pure SaaS. $300m SaaS ARR Today.
PredictionHeld up
Epicor CEO: Epicor will hit $1B revenue this year with 25-33% cloud
“We've built that business into about a quarter of a billion dollars. We'll be about a billion dollar top line business this year. And between a quarter and a third of that now is the cloud.”
Steve MurphyMar 10, 2021▶ 4:31Epicor Targets $1b Run Rate, 50% Pure SaaS. $300m SaaS ARR Today.
PredictionNot checkable as stated
Murphy: Epicor SaaS bookings will top out around 80% of total
“I think that for us a 60, 40 split will probably move towards 80, 20. I don't know if it'll ever go much beyond that because I think there'll always be a segment that likes to be do-it-yourselfers. When it comes to managing the ERP system, that's my guess.”
Steve MurphyMar 10, 2021▶ 7:39Epicor Targets $1b Run Rate, 50% Pure SaaS. $300m SaaS ARR Today.
Insight
Murphy: Cloud ARR multiple inflection occurs at 33% to 50% of revenue
“There's kind of a within your question, I think there's a saturation point at around third to a half of your ARR. When you get to that point being cloud, people do have to say you're kind of a cloud business.”
Steve MurphyMar 10, 2021▶ 9:17Epicor Targets $1b Run Rate, 50% Pure SaaS. $300m SaaS ARR Today.
Insight
Murphy: PE buyouts succeed when structured as bonds with call options
“Demonstrate over a period of maybe a year and a half or two years, six to eight quarters to the investment community that you've got a, it's kind of like a bond with the call option. You've got this bond, which is the recurring revenue stream. The call options…”
Steve MurphyMar 10, 2021▶ 15:37Epicor Targets $1b Run Rate, 50% Pure SaaS. $300m SaaS ARR Today.
Insight
Murphy: PE-backed firms need liquidity events every 3 to 4 years
“I think where people get in trouble is when they want to create liquidity too frequently in private equity, you can't do it every year or every other year. Maybe it's every three years, or if they think they can wait five to 10 years, then you lose good people…”
Steve MurphyMar 10, 2021▶ 18:26Epicor Targets $1b Run Rate, 50% Pure SaaS. $300m SaaS ARR Today.
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