Demandware IPO, the Exit Trend, Speculations on hybris

Demandware announced their intended IPO last week. According to the SEC prospectus, Demandware reached revenues of $36.7 million in 2010 (+71%).

Neckermann.de was by far the largest of the 75 Demandware customers and alone generated a fifth of the 2010 Demandware revenues.

The most interesting of the financial figures are summarized in the offer prospectus:

 "We generated revenue of $7.5 million, $21.4 million and $36.7 million in 2008, 2009 and 2010, respectively. […]

As of March 31, 2011 we had 75 customers using our Demandware Commerce platform, up from 23, 40 and 69 as of December 31, 2008, 2009 and 2010, respectively. […]

For the years ended December 31, 2009, and 2010, revenue recognized from neckermann.de represented 27.9% and 20.6%, respectively, of our total revenue."

21% of the Demandware shares are still held by founder Stephan Schambach. Demandware. The hope is to top Magento by raising up to $100 million in the public offering. Magento is rumoured to have been valued at $180 million as per their recent exit.

For about a year now, a wave of exits have been happening amongst the shop system providers and the last months have shown no stopping of this impetus: First Oracle grabbed ATG for a cool billion, then eBay acquired GSI Commerce (with Intershop) for $2.4 billion and Magento for a speculated $180 million. And now it is Demandware with their IPO.

Ina Steiner commented again on the enthusiasm of the market in regards to the proud valuations of recent past:

"When its competitor GSI announced 4 months ago that eBay was acquiring it, Demandware wrote on its blog that it was "thrilled" by the recent developments in the industry. "We at Demandware are excited to see that in the past six months, two public ecommerce platform providers, ATG being the other, were both acquired for $1 billion or more. With these lofty valuations, it just further highlights the shift in consumer shopping preferences to the online world and the upcoming investment that retailers will need to make to meet the demand."

Now that some of the biggest players in the e-commerce solutions market have shuffled around, all eyes are now on hybris. As one of the last of the large shopping system providers, it wouldn’t be surprising if hybris takes advantage of the current environment to make their move. An IPO like Demandware or an acquisition like ATG/GSI? With IBM already covered, SAP could be the hottest favourite for an acquisition. At least it doesn’t hurt that SAP uses hybris already in their BusinessByDesign solutions package.

Originally posted by Jochen Krisch as two posts (1, 2), adapted for excitingcommerce.com by Jason Soo.

Comments

[Best Ecommerce Software]

I am glad you brought up GSI Commerce and eBay as I have been following this story and its an interesting power move on eBay. If you are familiar, eBay has been on a major power buy, acquiring every type of platform from daily deals to ecommerce hubs. With the acquisition of GSI's clientele and its storefronts, I am curious on your take as to how the eBay/GSI Commerce buy will affect major ecommerce platforms competitors like Demandware?

Thanks so much.