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I'm baffled by the price SAP paid tbh. The price SAP is paying for Qualtrics equates to around 20X sales, and there is no indication there is huge growth on the
by olivermarks 8y ago
I'm baffled by the price SAP paid tbh. The price SAP is paying for Qualtrics equates to around 20X sales, and there is no indication there is huge growth on the horizon or that this is a long term market.
Dennis Howlett knows a lot about SAP and wrote these early thoughts which I thought are on point.
https://diginomica.com/2018/11/12/qualtrics-acquired-saps-high-priced-bid-to-solve-customer-experience/ https://diginomica.com/2018/11/12/qualtrics-acquired-saps-hi...
- mdorazio 8y agoI'm scratching my head on this one as well. Survey Monkey's market cap is somewhere around $1.3B. Medallia's current valuation is unknown, but should be under $3B. Qualtrics plays in the space in between these two and even though it has a strong following and good growth prospects, it still seems like SAP paid about double what they should have. My best guess is someone has a convoluted plan to integrate Qualtrics into SAP as a module that enough customers will pay for to make it worthwhile.
- sbr464 8y agoPossibly to deter leverage from a competitor, among other reasons?
- segmondy 8y agoWho cares about the sales? The profit is anemic! This is nothing more but madness of the corporate crowd. Lot's of dumb money are swishing around looking for a safe space and the next big thing. :-/