About the Lonergan SV150

Why We Created the Lonergan SV150

When we learned that The Mer­cury News did not plan to update their Sil­i­con Val­ley 150 rank­ing to reflect 2017 results, we set out to cre­ate a new — and we hope improved — list of the top pub­lic tech com­pa­nies in Sil­i­con Val­ley, which we are call­ing the Lon­er­gan SV150.

As experts in Sil­i­con Val­ley lead­er­ship and tal­ent, Lon­er­gan Part­ners is pub­lish­ing this list as a pub­lic ser­vice. We hope you will use it as a ref­er­ence guide for bet­ter under­stand­ing the top com­pa­nies and busi­ness lead­ers in our area.

The Lonergan SV150 ranks public technology companies that fall within a 50 mile radius of the Hewlett-Packard garage, generally considered the birthplace of Silicon Valley.

Evolution from The Mercury News SV150

For over thir­ty years, The Mer­cury News pub­lished a list of the top pub­lic com­pa­nies in the Bay Area, which even­tu­al­ly came to focus sole­ly on tech­nol­o­gy com­pa­nies, in a list they called the SV150. Start­ing in 2014, Lon­er­gan Part­ners began pub­lish­ing Who Runs Sil­i­con Val­ley, a series of lead­er­ship insights focus­ing on the com­pa­nies list­ed in the The Mer­cury News SV150 (which we will abbre­vi­ate as the MN SV150 from this point on).

Since we found this rank­ing very valu­able in dis­cussing tal­ent and lead­er­ship issues in our com­mu­ni­ty, we decid­ed to cre­ate a new and improved rank­ing, which still can be used in com­par­i­son to the MN SV150. For specifics on our method­ol­o­gy and how it com­pares to the MN SV150, con­tin­ue read­ing below.

Development of the Lonergan SV150

Rank­ing Method

We ranked Sil­i­con Val­ley pub­lic tech­nol­o­gy com­pa­nies by pri­or cal­en­dar year rev­enue, just as The Mer­cury News did in their MN SV150.

Com­pa­ny Eligibility

To be eli­gi­ble for inclu­sion, com­pa­nies had to meet the fol­low­ing criteria:

A Pub­lic Com­pa­ny on the Cut­off Date

The cut­off date for inclu­sion was June 30, 2018. This is a sig­nif­i­cant dif­fer­ence from the method­ol­o­gy used by the MN SV150. We left off com­pa­nies that had been ful­ly acquired by the cut­off date even if they were inde­pen­dent as of Dec 31, 2017. In coun­ter­point, we includ­ed 2018 IPOs as of the end of June 2018. The result of this change is to make the list more up-to-date as of publication.

Head­quar­tered in the Sil­i­con Valley

The com­pa­ny head­quar­ters had to be locat­ed with­in 50 miles of the HP garage in Palo Alto, the birth­place of the Sil­i­con Val­ley (our radius stretch­es far­ther north, south and east than the MN SV150). We made some judg­ment calls about what head­quar­ters real­ly means in cas­es where com­pa­nies found­ed abroad claimed legal head­quar­ters in the Sil­i­con Val­ley, but did not show local man­age­ment. As an exec­u­tive search firm, we take a tal­ent and lead­er­ship per­spec­tive here, look­ing at the loca­tion and back­ground of the man­age­ment team as the lead­ing indi­ca­tor of where the com­pa­ny is cur­rent­ly headquartered.

Inde­pen­dent

The com­pa­ny stock had to be trad­ed as an equi­ty on the NYSE or the NAS­DAQ. The US sub­sidiaries of inter­na­tion­al tech firms head­quar­tered out­side the USA, such as Sam­sung and Nokia, were not included.

A Tech­nol­o­gy Company

We fol­lowed the prece­dent set by The Mer­cury News: we includ­ed all com­pa­nies for­mer­ly on the MN SV150 list that met this year’s rev­enue cut­off and had not been ful­ly acquired. New pub­lic com­pa­nies were includ­ed if they met cri­te­ria above and they qual­i­fied as tech in nature based on their com­pa­ny descrip­tions, news infor­ma­tion about their prod­uct offer­ings, and a look at the tal­ent lead­ing the com­pa­ny, sit­ting on its board, and mak­ing invest­ments in it.

Finan­cial Data Com­par­isons & Ratios

Fis­cal Year Variations

For com­pa­nies with Decem­ber fis­cal year ends, all rev­enues, growth and prof­itabil­i­ty cal­cu­la­tions used fis­cal year data as report­ed by Yahoo Finance. When a com­pa­ny did not have a Decem­ber fis­cal year end, we adjust­ed using quar­ter­ly data to the 4 quar­ters end­ing clos­est to Decem­ber 31. Finan­cial data was sourced start­ing with Yahoo Finance and sup­ple­ment­ed when nec­es­sary with the company’s data report­ed in its 10Qs. Every effort was made to reflect amend­ed finan­cial state­ments when­ev­er possible.

Prof­itabil­i­ty

Prof­itabil­i­ty refers to Net Income divid­ed by Sales (net prof­it ratio) adjust­ed to the same time peri­od as above. Net income may include results from dis­con­tin­ued oper­a­tions, restruc­tur­ing and merg­er-relat­ed expens­es, invest­ment gains or loss­es, gains on extin­guish­ment of debt, as well as any amor­tized or non­re­cur­ring charges.

The Stan­ford Dish ban­ner pho­to at the top of this page is by Jawed [CC BY 3.0 ], from Wiki­me­dia Commons