Main software 50 shows that the Dutch software sector is again performing above average

General
07/11/2013

The Main software 50 shows that the Dutch Software sector continuous to perform above average. While the Netherlands still is experiencing the effects of the economic downturn, the Dutch product-software sector proves that it is one of the best performing sectors of the Netherlands. For the 2nd time Main Capital Partners presents the Main software 50, a yearly ranking of the most successful independent Dutch software companies. After a successful first edition, there are even more entries this year. The software industry proves once more that it is fast growing and presents itself again as a cornerstone of the Dutch economy, that isn’t effected by the general recession.

The Main software 50 gives more visibility to the Dutch software industry. The first edition of the Main software 50 attracts a lot of attention of national and international parties, not only investors, but also customers, governmental institutions and strategic partners reacted with a lot of enthusiasm towards the initiative. IASO, the winner of the Highest growth award 2012, has realized a very successful sale to the American cloud based software company GFI. For a broader vision and to generate even more market awareness Nederland ICT (Dutch software branch organization) has supported the organization this year. The IT research bureau Dialogic is again involved as audit partner, to ensure complete independency of the Main software 50. RES Software is the winner in the overall ranking of the 2013 edition of the Main software 50.

RES Software provides software solutions for workspace virtualization. ORTEC is placed second in the overall ranking, they are specialized in Planning and Optimalization software within several verticals. The third place is for TOPdesk, they deliver Facility Management Software. Alongside of the overall ranking, there are 2 subcategories this year: The highest growth award and the CloudChampion. BrightComputing, a specialist in the system management software business, has won the Highest growth award, with an amazing growth in revenues of 230%. SpamExperts may call itself the CloudChampion 2013, they are experts in the field of Security software. The full list can be found on www.mainsoftware50.nl From the research several interesting results have been found:

  • The total revenue of the Main software 50 was € 749m in 2012, This represents a growth of 8% relative to 2011. The median of the revenue growth 2011-2012 is 16%.
  • The companies on the list employed 6.591 FTE’s, a growth of 10%. The average revenue per employee was € 114K.
  • Total revenue consist for 54% of recurring revenues, composed out of 38% Saas/Cloud revenues and 16% Maintenance. The rest of the total revenues was 32% Services and 11% Licences.
  • The weighted average revenue that comes from outside the Netherlands is 19%, this number is depressed by a few larger companies. If we correct the weighted average revenue for these companies, the revenue from outside the Netherlands would be 26%.
  • Younger companies (0-5 years) grow on average with 50% per year. Companies that exist 5 years or longer grow on average with 10% per year.
  • Software companies expect to grow fast in the upcoming 2 years. 40 companies (80%) expect to grow with more than 10% per year.
  • A partner/reseller model generates extra growth: companies of which more than 10% of their revenue came via partners/resellers, have an average revenue growth of 19%.
  • Software is a growing as well as a profitable market. 42 companies (84%) have a positive EBIT in 2012. 10 companies (20%) have an EBIT marge of 21-50% of the their revenues in 2012.
  • 46 out of the 50 Main software 50 companies are spending more than 10% of their revenues to R&D.
  • Companies that spent between 21-25% of their revenues to R&D, present the highest growth in revenues (21%).

In fall 2014 the Main software 50 2014 will be published, we hope that there will be even more enthusiastic participants and other people that are interested in the Main software 50 as this year. After the successful close of its new private equity fund, Main Capital III, Main Capital Partners aims to invest app. EUR 100m predominantly in Dutch software companies.

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The Main Software 50 is an initiative of Main Capital Partners