2020 saw big corporate changes in the Silicon Valley.
Lonergan Partners is pleased to bring you the timeliest ever Lonergan SV 150 – our annual ranking of the top public tech companies headquartered within fifty miles of the old HP Garage — to paint you a picture of 2020 tech sector results.
The final rankings will be available for download on our website in the next two weeks. In the meantime, here are some up-to-the-minute observations I think you’ll be interested in.
Astonishing growth in Lonergan SV150 total market cap
March 31, 2021 year-over-year growth in market cap was an incredible 83% same-company increase.
Over half of LSV150 companies saw their market caps rebound over 100% from year-prior March 31, 2020 levels, which was near a market low for the year.
The top two performers on this metric were two companies led by women CEOs: Sunrun (LSV#83) grew market cap 913% under CEO Lynn Jurich, benefitting from the current administration’s big support for green projects; and Upwork (LSV#125) grew market cap 655% under CEO Hayden Brown, as pandemic tailwinds expanded the freelance-gig economy.
Revenue growth winners were not confined to ‘pandemic story’ stocks – but two of them did top the list
In a same-company comparison, total Lonergan SV150 revenues grew 11% (to a total of $1.2 trillion), a respectable but not record-breaking increase. The ratio of companies growing versus losing revenue (115 growing to 35 contracting) resembled recent prior years.
While aggregate growth was not remarkable, individual companies did see some record-setting increases, however.
Our first-ranked company for revenue growth in 2020 was Zoom Video Communications (LSV#48) — up 326%.
Our second-ranked company was newly public Doordash (LSV#46) — up 226%.
Some honorable mentions: Snowflake (LSV#104) up 124%, and Square (LSV#23) up 101%, which were ranked #4 and #5 on revenue growth.
Newly public Airbnb makes the list of top revenue losers in 2020
Airbnb (LSV#39) revenues were down 30%, putting it high on the list of those companies who lost revenue in 2020. Also among the top revenue losers were newly public Opendoor (LSV#50) — down 46%; Lyft (LSV#53) — down 35%; GoPro (LSV#89) down 25%; and Uber (LSV#20) — down 21%.
Follow us for more insights — coming soon!
This year’s ranking produced many new and surprising Silicon Valley trends, including:
- seven companies from last year’s list moved their headquarters out of the Silicon Valley — is this a trend or one time surge?
- a bumper crop of new public companies made the list
- the first SPAC-merger company makes the list
- growth in the number of founder-led companies, as well as women board directors
- no momentum at all in the number of women CEOs
- the “great pause” seems to have impacted both CEO turnover, and the number of ranked companies being acquired
For detailed insight on the topics above, look for more of our posts in the coming weeks. Follow us on LinkedIn or visit our website at lonerganparters.com/blog.