About a year ago, I posted a piece focused on the Gartner Procure to Pay Magic Quadrant with added valuation information (see here). Since that time:
- stock prices have gyrated
- Coupa and Tradeshift raised rounds, and
- several acquisitions were made by public companies in the space (Verian, Iasta, b-Pack, jcatalog).
In short, it seems like time to update the chart. So here is the Gartner Procure to Pay Magic Quadrant with updated commentary on valuations. (I used a multiple of sales as the most expedient valuation metric):
Gartner Procure to Pay Magic Quadrant
The chart suggests:
- The procure to pay space never ceases to interest investors.
- There are widespread disparities in valuation based on growth (or the lack thereof). No big surprise there!
- Ivalua and BirchStreet must be getting a lot of inquiries and attention.
- Determine (DTRM) is not getting a lot of love from the market. It has now assembled a complete procure to pay solution and yet its market cap is about 0.5x sales. Since DTRM is losing money, even on a non-GAAP basis, investors are implicitly expressing concern about Determine as an ongoing concern.
Note: this chart does not include Tradeshift, who was not a complete procure to pay player when it was issued. Now it is. According to CrunchBase, Tradeshift has raised $174 million. Tradeshift has not disclosed their revenue, but I’d take a wild guess at $20 million.
Whether you a public or private investor, there are still several bets you can place in this sector–though you can see the big bets have been placed on Ariba and Coupa.