The Inc. 5000 list of the fastest growing companies in the United States was announced earlier today. As a testament to the consistently strong performance of the SaaS market, we wanted to highlight the top 12 SaaS companies on the 2019 Inc 5000.
2019 has seen the SaaS market deliver strong returns for investors, and as the SaaS model maintains its standing as one of the most scalable ways to sell software, the private and public markets alike have echoed the enthusiasm for SaaS.
In a report by Crunchbase, publicly-traded SaaS companies in Q2 reached only a few points below the record highs (as measured by the BVP Nasdaq Emerging Cloud Index.) This likely indicates strong valuations in the future for private sector SaaS businesses. Towards the end of the first half of 2019, the basket of SaaS stocks was valued at 1,248.21, just off its 52-week and all time high of 1,253.05, and the SaaS and cloud companies in its index are recently trading 11x their enterprise value as reported by Bessemer.
As the Inc 5000 demonstrates, with 7 of the top 25 companies being SaaS, software-as-a-service proves once again to be a dominant and expanding industry.
So, without further ado, here are the top 12 SaaS companies from the Inc 5000 US 2019 list:
Inc. 5000 Rank: #1
Freestar is the fastest growing privately held company in the United States. With a whopping 36,680% increase in revenue growth over the past three years, this rising empire is ranked #1 on this year’s list. The advertising and marketing company helps businesses build marketing campaigns, generate brand awareness, and boost revenue through content promotion. Based out of Phoenix, AZ and with just 40 employees, Freestar managed to rake in $36.9 million in revenue for 2018. This ad-tech startup is one to watch.
Inc. 5000 Rank: #2
FreightWise is a SaaS platform that has made major contributions to the transportation industry by streamlining services for shipping and invoicing. From 2015 to 2018, FreightWise has experienced a 30,548% increase in revenue growth and earned $33.6 million in 2018. Founded just over three years ago, the Tennessee based SaaS company is filling critical gaps in the freight industry.
Inc. 5000 Rank: #23
At the top of our list with a 7,966% increase in revenue over the past 3 years, is email marketing star, ConvertKit. The software startup helping thousands of people reach clients through their software services sits at #23 on this year’s Inc. 5000 list. ConvertKit offers artists, authors, YouTubers, and creators of all kinds a platform to earn money through email marketing. Founder, Nathan Barry, lead the company to earn $13.8 million in revenue in 2018 landing him on the latest cover of SaaS Mag.
Inc. 5000 Rank: #24
Based in San Francisco, the company providing print-on-demand services ranks #24 on the list with an impressive 7,926% increase in growth from 2015 to 2018. In 2018, the three-year-old business earned an impressive $10.5 million in revenue by helping organizations simplify the printing process. Their software allows e-commerce companies to work with multiple print providers across the globe to create and send products to their customers.
Inc. 5000 Rank: #25
Specializing in the employee experience and engagement, Awardco ranks #25 on this year’s list. The company supports over a million users in 100 countries by providing a platform that gives employers the opportunity to reward recognition within their company. With a 7,478% increase in revenue, the company is expected to continue growing as they managed to earn $8.9 million in revenue in 2018.
Inc. 5000 Rank: #29
LumenAD is an advertising management platform that functions across channels. Built for modern advertising, this software tool has the power to unify all programmatic, direct, search and social data into one hub. By solving the challenges of cross-channel media, LumenAD has increased it’s revenue by 7,045%, earned $11.8 million in 2018, and ranks #29 on the Inc.5000 list.
Inc. 5000 Rank: #46
Coming in at #46 on the 2019 list, Beeswax has experienced serious growth with a 5,768% increase in revenue over the past three years. The platform provides users with intuitive solutions by developing software that helps brands and businesses with marketing, recognition and growth strategies. The NYC based company founded in 2014 earned $16.9 million in revenue in 2018.
Inc. 5000 Rank: #52
Podium, lead by Erica Rea, has developed a platform for local businesses that manages interactions with customers and provides insights into the customer experience. Revenue has seen a 5,417% increase in growth from 2015 to 2018. Podium was also included on the Forbes 2018 list of World’s Best Cloud Companies and is ranked #52 on this year’s Inc. 5000 list. Revenue for the company in 2018 topped out at $42.5 million.
Inc. 5000 Rank: #60
The cloud distribution leader is listed as #60 with a 4,820% increase in revenue growth. This Colorado based SaaS business was able to earn $42 million in revenue last year by simplifying cloud buying with PSA integrations, sales support, billing, provisioning, and automation. Pax8 has been helping companies improve operational efficiency and lower customer acquisition costs since 2012.
Inc. 5000 Rank: #61
Terminus helps companies drive growth with their advanced marketing and sales platform. The company provides B2B organizations with command center for data-lead account targeting, revenue and outcome reports and unified multi-level campaigns. Over the past three years, revenue for Terminus has grown by 4,730% with $21.5 million in revenue earned in 2018. Inc. 5000 ranks this platform at #61.
Inc. 5000 Rank: #62
TradePending offers dealer-to-dealer software solutions for companies in the automotive industry. With their widely used trade-in tool, Snap, TradePending connects shoppers with real auto-market data through simple website integrations. While helping auto-shoppers and sellers by simplifying the vehicle trade-in and purchasing process, the company has managed to increase their revenue by 4,430%. Founded in 2014, the North Carolina based company earned $5.8 million in revenue in 2018.
Number 1006 on this year’s Inc. 5000 list is New Jersey-based online graphic design service, Penji. Founded by Johnathan Grzybowski and Khai Tran in 2015, this growing company provides unlimited access to graphic design services for marketing agencies and brands. For a monthly flat rate, users can get custom logos, promotional materials, infographics and more. Penji has seen a 420% increase in revenue growth from 2015 to 2018, earning $2.6 million in revenue for 2018. We’ll be watching to see how far this brand will go in the coming years.
13. FE International
FE International is an award-winning M&A advisory specializing in deals for mid-market SaaS, e-commerce, and content businesses. With offices all over the world including New York, London, and Singapore, FE International offers business sellers access to a network of pre-qualified investors and works to maximize the value of online businesses. The company recently released their 2019 Technology M&A Mid-Year Market Review which provides insights a detailed outlook for the industry. Founders Thomas Smale and Ismael Wrixen have led the company to increase revenue at a rate of 419% over the last three years. FE International offers free, no obligation valuations for SaaS companies. If you are interested in receiving a valuation, click here.
Emily is Editor in Chief at SaaS Mag, bringing with her a history of business and economic writing as well as editorial directing for Wharton Magazine, professional experience in investment banking and oil & gas consulting, and a passion for international business. As a marketing analyst for FE International, she manages the communication of a company’s identity through the application of content marketing and data analysis. Emily graduated from the University of Pennsylvania and the Wharton School with a Bachelor of Arts in English and a Bachelor of Science in economics.