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.
2019 Lonergan SV150 revenues grow more slowly but still top $1 trillion for the second consecutive year
The Lonergan SV150 had total 2019 revenues of $1.183 trillion, which represents 8% same company growth year-over-year. Growth slowed significantly from 2018, when sales grew by 16%. #1 ranked Apple (representing 23% of Lonergan SV150 revenue) continued to be a major contributor to slowing growth. Apple grew calendar year 2019 revenues by only 2%, versus 9% revenue growth for the 2018 calendar year (Apple fiscal year adjusted per our ranking methodology; the Apple fiscal year ended September 30, 2019). Without Apple, the Lonergan SV150 grew 9%.
Total net income for the Lonergan SV150 was $190 billion, down $3 billion from the prior year. As of mid July 2020, market cap was up an astounding 57%, from $4.9 trillion to $7.7 trillion, despite the market volatility in the past few quarters.
Acquisition activity roller coaster: 2019 peak giving way to 2020 valley
A total of 13 Lonergan SV150 ranked public companies have been fully acquired and delisted since our ranking last year. These include Symantec, Cypress, Shutterfly, Finisar, Mellanox, EFI, Tivo, Pivotal, Wageworks, Genomic Health, Nanometrics, Quantenna, and Aerohive.
All but three of the thirteen acquisitions since last year’s ranking occurred in the second half of 2019. In 2020, the impact of Covid-19 was felt as a slowdown in new deals announced in Q2. However, as of the time of this analysis in July, 2020, several additional LSV150 ranked companies are in the process of being acquired, including #54 ranked Maxim, #61 ranked FitBit, and #123 ranked Forescout .
Despite the compression of the activity timeline, this year's Lonergan SV150 update represents a high level of acquisition activity. On our last list, there were only eight companies departing through acquisition. Historically, 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 largest company on last year’s ranking to be acquired was #30 (2019 list) ranked Symantec, which was bought by Broadcom in a 2019 deal said to be worth $10.7 billion. Broadcom has since spun off Symantec’s cybersecurity business in April 2020.
Slowdown in IPOs
Seven recent IPOs (last 12 months) are debuting on the Lonergan SV150 this year, a slowdown from last year’s list, which boasted ten new IPOs, with mega-IPOs Über (LSV #18 in 2019) and Lyft (LSV #48 in 2019) amongst them.
The highest ranking debut IPO on the Lonergan SV150 is #84 ranked Slack, with 2019 revenues of $630 million.
Although Q2 did not see much new public debut activity, recent weeks have seen an uptick in IPO filings nationwide, with Palo Alto-based data analysis company Palantir filing on July 6, 2020 for a direct debut anticipated in July or August 2020. Palantir reports 2019 revenues of $739 million, which would have placed it at rank #89 on this years list.
All seven IPOs new to the list are shown below:
|Rank||Company (IPO year)||Business Description||2019 Sales (M)||Profitability||Growth||Mkt Cap|
|94||Slack (2019)||Workplace collaboration software||$630||-91%||57%||$18.8 b|
|102||Crowdstrike (2019)||Cybersecurity platform||$481||-29%||93%||$23.0 b|
|113||Medallia (2019)||Customer management software||$402||-28%||28%||$4.2 b|
|131||Cloudflare (2019)||Cloud based security platform||$287||-37%||49%||$11.7 b|
|135||10x Genomics (2019)||Tools for genomic analysis||$246||-13%||68%||$9.1 b|
|149||Livongo Health (2019)||Digital health management tools||$170||-32%||149%||$11.1 b|
|150||PagerDuty (2019)||Real time incident management platform||$166||-30%||41%||$2.1 b|
Market cap reflects value on July 20, 2020.
The South Bay hangs on as geographical hub for Lonergan SV150 headquarters
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) houses well over half of the headquarters for the Lonergan SV150. Despite the departure of many a South Bay based public company in the past ten years, the list of large South Bay based public tech companies continues to be replenished at a fairly constant rate.
By contrast, while San Francisco is home to only 21% of Lonergan SV150 headquarters, its market share has been steadily rising; San Francisco boasts the headquarters of four of the seven 2019 IPOs on the list. San Francisco county is second ranked among the seven counties represented in our ranking (other counties are San Jose, San Mateo, Alameda, Contra Costa, Marin and Santa Cruz). It’s popularity seems to be coming at the expense of Alameda and San Mateo counties.
- 84 of the companies in the Lonergan SV150 are headquartered in Santa Clara county.
- Four of seven 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 by only one versus 2019. With the acquisition of Genomic Health (#111 on the 2019 list), we said goodbye to long-time CEO Kimberly Popovits. However, we now can celebrate the arrival of Hayden Brown, CEO of Upwork (LSV #130); and Jennifer Tejada, CEO of PagerDuty (LSV #150).
The current eight women CEOs of the Lonergan SV150 are:
- Safra Catz, Oracle (LSV #7)
- Lisa Su, AMD (LSV #26)
- Jayshree Ullal, Arista (LSV #49)
- Katrina Lake, Stitch Fix (LSV #58)
- Lynn Jurich, Sunrun (LSV #86)
- Julia Hartz, Eventbrite (LSV #122)
- Hayden Brown, Upwork (LSV #130)
- Jennifer Tejada, PagerDuty (LSV #150) - IPO 2019
Twice the number of women serving as Board Chairs since our 2015 study
Women sitting in the Board Chair’s seat at public technology companies represent a growing crack in the governance glass ceiling. In our ongoing analysis of public technology companies in the Silicon Valley, we are starting to see an increase in the number of women executives take on this leadership role.
The table below lists the eight Lonergan Silicon Valley 150 companies with women Chairs as of July, 2020.
|Rank||Company||Name of Chair and Title||Timing|
|Name of Previous|
Pat Russo, Chair
|Nov 2015||None, Chair since spin-off||13||4|
|9||Tesla||Robyn Denholm, Chair||Nov 2018||Elon Musk, founder-CEO||10||1|
|58||Stitch Fix||Katrina Lake, founder-CEO and Chairperson||pre — IPO (Nov 2017)||Katrina has been Chairperson|
since the company was founded in 2011
|78||Yelp||Diane Irvine, Chairperson||Sep 2015||Max Levchin, co-founder||8||2|
|80||Docusign||Maggie Wilderotter, Chairman of the Board||Jan 2019||Keith Krach, former CEO |
|100||Natus Medical||Barbara Paul, Chairperson||July 2018||Robert Gunst||7||2|
|123||Forescout Technologies||Theresia Gouw, Chair||Mid 2019||Hezy Yeshurun, co-founder||9||2|
|150||PagerDuty||Jennifer Tejada, CEO and Chair||Became CEO in July, 2016||Unclear who was chair pre-IPO, but Jennifer|
replaced founder CEO Alex Solomon
Table reflects board information collected from company websites on July 17, 2020
In our 2015 landmark look at Silicon Valley 150 boards, there were only four Silicon Valley 150 companies with women chairmen. These companies and Chairs were: Hewlett Packard (2015 SV#2: Chair was CEO Meg Whitman); Oclaro (2015 SV#102: Chair was Marissa Petersen); Affymetrix (2015 SV#106: Chair was Jami Dover Nachsteim); Genomic Health (2015 SV#119: Chair was CEO Kimberly Popovits). HP was split into two new public companies, while Oclaro, Affymetric and Genomic Health were all acquired.
“Chair” title enjoys a sudden gain in popularity
As recently as September of 2019, we found half of the women chairing boards of the LSV150 used the title “Chairman.” Today, company websites show all but one of the women using the titles “Chairperson” or “Chair.”
Dual class stock ownership structures popular at founder-led IPOs
This year the number of Lonergan SV150 companies utilizing a dual class stock ownership (DCSO) structure climbed from 27 to 29. This growth is a function of its popularity with new IPO CEO-founders. Over 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
- Slack (LSV #94) IPO 2019 under CEO-founder Stewart Butterfield — post IPO voting power 7.5%
- Crowdstrike (LSV #102) IPO 2019 under CEO-founder George Kurz — post IPO voting power 22.5%
- Cloudflare (LSV #131) IPO 2019 under CEO-founder Matthew Price — post IPO voting power 23%
- 10x Genomics (LSV #135) IPO 2019 under CEO-founder Sergei Saxonov — post IPO voting power of Class B stock 7% and of Class A stock 1%
By contrast, none of the CEOs at recent IPOs NOT employing a DCSO structure were called founders.
IPOs Not Using DCSO
- Medallia (LSV #113) IPO 2019 under CEO Leslie Stretch — post IPO voting power 3.6%
- Livongo Health (LSV #149) IPO 2019 under CEO Zane Burke — post IPO voting power 1%
- PagerDuty (LSV #150) IPO 2019 under CEO Jennifer Tejada — post IPO voting power 5.9%
Note: Source for voting power comes from the 2020 proxy.
Of the 29 companies on the LSV150 with DCSO structures, twenty-five have founders in the role of CEO.