The Lonergan SV150 is the definitive list of the top public companies in technology located in the Silicon Valley. It is the successor to the SV150 list published for over thirty years by The Mercury News, which as of 2018 has been suspended.
The Lonergan SV150 had total 2018 revenues of $1.085 trillion, which represents 15% same company growth year-over-year. This strong revenue growth was achieved despite a slight slowdown at #1 ranked Apple (representing 24% of Lonergan SV150 revenue). Apple grew calendar year 2018 revenues by 9%, versus 10% revenue growth for the 2017 calendar year (Apple fiscal year adjusted per our ranking methodology; the Apple fiscal year ended September 29, 2018).
Total net income for the Lonergan SV150 was $193 billion, up 62% from the prior year. Market cap was also up from $4.4 trillion to $4.9 trillion, despite the market volatility over the past 12 months.
For a ten year retrospective on the changes in the SV150 2009 – 2018, please read our blog post The Lonergan SV150: Looking Back 10 Years.
For an extended company profile on each of the Lonergan SV150, including market cap, net income and performance ratios, click below for a downloadable PDF worksheet suitable for printing.
Slowdown in acquisition-based departures
A total of eight Lonergan SV150 ranked public companies have been fully acquired and delisted since our ranking last year. These include Verifone, Pandora, Cavium, IDT, Oclaro, Imperva, Abaxis, and Hortonworks.
This level of acquisition activity represents a slowdown from 2016-17, which were two cataclysmically active acquisition years. The peak year for M&A among large public companies on the list was 2016, when 18 companies on the prior year’s list went away. The current pace of recent acquisitions is approaching 2012-15 average levels of six acquisitions per year.
The largest company on last year’s ranking to be acquired was #50 (2018 list) ranked Verifone, a global payment and commerce solution provider, which was bought by Francisco Partners, a tech-focused private equity firm, in a 2018 deal said to be worth $3.4 billion.
In the first half of 2019, only four companies on last year’s ranking have been acquired. Several additional ranked companies are in the process of being acquired, including #46 Cypress and #52 Shutterfly.
The return of IPOs
Ten recent IPOs are debuting on the Lonergan SV150 this year, following an equally impressive showing from last year’s list, which also boasted ten new IPOs.
The highest ranking debut IPO on the Lonergan SV150 is Number 18 ranked Über, with 2018 revenues of over $11 Billion. Recent IPOs have remade the landscape of the Silicon Valley, with 49 of the Lonergan SV150 made up of companies with IPOs from 2014 on.
All ten new IPOs are listed below:
|Rank||Company (IPO year)||Business Description||2018 Sales (M)||Profitability||Growth||Mkt Cap|
|18||Über (2019)||Transportation network||$11,207||-16% (“normalized”)||42%||$76.4 b|
|48||Lyft (2019)||Transportation network||$2,157||-42%||103%||$17.5 b|
|86||Pinterest (2019)||Photo sharing platform||$756||-8%||60%||$14.9 b|
|116||Zoom Video (2019)||Web conferencing platform||$331||2%||119%||$24.7 b|
|122||Eventbrite (2018)||Online event ticketing||$292||-22%||45%||$1.4 b|
|127||SVMK (2018)||Online survey platform||$254||-61%||16%||$2.2 b|
|128||Upwork (2018)||Online freelance marketplace||$253||-8%||25%||$1.6 b|
|132||Anaplan (2018)||Financial planning software||$241||-54%||38%||$6.1 b|
|148||Fastly (2019)||Website speed platform||$145||-51%||49%||$236 m|
|150||Sonim Technologies (2019)||Mobile devices for rugged uses||$136||-12%||58%||$310 m|
Market cap reflects value on June 7, 2019. Über profitabily shown on the table reflects “normalized” net income reported by Thomson Reuters; unadjusted net income for 2018 including one-time gains was pushed into the positive, mostly from the sale of its Russian and Southeast Asia businesses.
The South Bay continues to be the geographical hub of Silicon Valley headquartered public tech companies
The South Bay is still the center of gravity for the public company tech world. Despite VC and start-up company flight northwards, the South Bay (from Mountain View south to San Jose and including Fremont) represents well over half of the Lonergan SV150 company headquarters. By contrast, San Francisco represents only 20% of Lonergan SV150 headquarters. This metric has been increasing in recent years however, moving San Francisco county into second place among the seven counties represented in our ranking (other counties are San Jose, San Mateo, Alameda, Contra Costa, Marin and Santa Cruz).
- 83 of the companies in the Lonergan SV150 are headquartered in Santa Clara county.
- Six of ten IPOs debuting on the list are headquartered in San Francisco
Despite an unprecedented level of attention focused on the issue of women in tech, the number of women CEOs represented on the list went up only one versus 2018. Nevertheless, we celebrate the arrival of Julia Hartz, CEO-founder of 2018 IPO Eventbrite (LSV #122).
The current seven women CEOs of the Lonergan SV150 are:
- Safra Catz, Oracle (LSV #7)
- Lisa Su, AMD (LSV #24)
- Jayshree Ullal, Arista (LSV #49)
- Katrina Lake, Stitch Fix (LSV #61)
- Lynn Jurich, Sunrun (LSV #85)
- Kimberly Popovits, Genomic Health (LSV #111)
- Julia Hartz, Eventbrite (LSV #122) — IPO 2018
Big improvement in women on boards
As of May 2019 proxy season, women directors fill 23% of the board seats on the Lonergan SV150. Compared to our study of Silicon Valley boards published in our 2015 Who Runs Silicon Valley Board edition, this is an increase of 9 percentage points. A relentless focus on gender diversity in the Silicon Valley has yielded a change in recruitment at the board level.
- Board seats filled by women: 157 in mid-2015 rising to 307 today
- Percent women held seats: 14% in mid-2015 rising to 23% today
- Number of Lonergan SV150 boards with no women directors: 45 in mid-2015 dropping to 7 today
Note: our 2015 board study reflected the population of board directors of the Silicon Valley 150 in summer 2015. Only 144 companies were included at that time, because six companies in The Mercury News listing had been acquired before summer 2015. Our numbers in the above comparisons have been adjusted to include the board populations of those six companies using the board profiles in their April 2014 proxy filings.
IPOs with CEO-founders continue to debut with dual class stock ownership structures
This year the number of Lonergan SV150 companies utilizing a dual class stock ownership (DCSO) structure climbed from 22 to 27. This growth is a function of its popularity with new IPO CEO-founders. Exactly half of the new IPOs that hit the list this year employ a DCSO structure, and all are founder-led. Companies with this type of structure have a separate “super-vote” class of stock typically controlled by insiders only.
IPOs Using DCSO
- Lyft (LSV #48) IPO 2019 under CEO-founder Logan Green — post IPO voting power NA
- Pinterest (LSV #86) IPO 2019 under CEO-founder Ben Silbermann — post IPO voting power NA
- Zoom Video Communications (LSV #116) IPO 2019 under CEO-founder Eric Yuan — voting power 22% pre-IPO
- Eventbrite (LSV #122) IPO 2018 under CEO-founder Julia Hartz — voting power of Class B stock 17.4% pre-IPO
- Fastly (LSV# 148) IPO 2019 under CEO-founder Artur Bergman — voting power 15.6% pre-IPO
By contrast, none of the CEOs at recent IPOs NOT employing a DCSO structure were called founders.
IPOs Not Using DCSO
- Über (LSV #18) IPO 2019 under CEO Dara Khosrowshahi
- SVMK (LSV #127) IPO 2018 under CEO Zander Lurie
- Upwork (LSV #128) IPO 2018 under CEO Stephane Kasriel
- Anaplan (LSV #132) IPO 2018 under CEO Frank Calderoni
- Sonim Technologies (LSV#150) IPO 2019 under CEO Robert Plaschke
Note: Source for voting power comes from the 2019 proxy; in cases where no 2019 proxy is filed, the company stock prospectus was used.