More $10 billion software companies are being minted than ever before — here's why

Datadog went public on Thursday and instantly hit a $10 billion valuation, becoming the fourth cloud software debut to reach that level this year.

Jason Lemkin, an investor at SaaStr, sees the cloud market continuously opening up to more categories, expanding the overall pie. According to, the global market for public cloud services will climb 17.5% this year to $214.3 billion. That money is being spread across many areas, including productivity apps, developer tools, security and backend infrastructure.

The 2019 class is particularly attractive to investors because the biggest of them show extremely high customer retention rates, meaning that they're very efficient with their sales and marketing dollars. Not only are customers sticking around, but they're increasing the size of their contracts. Eric Yuan, CEO of Zoom Video Communications poses for a photo after he took part in a bell ringing ceremony at the NASDAQ MarketSite in New York, April 18, 2019.Crowdstrike and Datadog are by far the most expensive software companies across the entire market, with each valued at 39 times revenue or higher, according to FactSet.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

CNBC /  🏆 12. in US

Canada Latest News, Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Ex-NFL Player Claims Woman Demanded $10 Mil Or Else She'd Make Sex Assault ClaimThe ex-NFL safety claims he's being targeted in a shake down. The accuser says she's the real victim.
Read more »

Kawhi Leonard Starts L.A. House Hunt, Checks Out $10 Million Home!Kawhi Leonard is officially on the prowl for his new home
Read more »

Detour leads man to a $10 million lottery winA detour led a Massachusetts man to a $10 million lottery ticket.
Read more »

Here's how big tech companies like Google and Facebook set salaries for software engineersSoftware engineers straight out of college often make six-figure salaries, not counting equity compensation.
Read more »

Kat Blaque Doesn't Give a FuckThe YouTuber on why QTPOC creators are more important to discourse than ever before.
Read more »

Watch Selena Gomez Explain Why She Retreated From the Spotlight to Work on Her Mental Health'I can say that after a year of a lot of intense work that I am happier [and] I am healthier...'
Read more »