Today, software is ubiquitous. In a connected world driven by the growing digital economy, software is present in all aspects of our lives and businesses. By the year 2025, there will be 34.2 billion active device connections, up from 13.9 billion in 2015, according to IoT Analytics. Trends like Internet of Things (IoT) technology, autonomous driving, and the smartphone have driven huge increases in the need for developers and programmers, which in turn has driven strong growth across the Application Development (AppDev) & Deployment Software industry.
Public AppDev & Deployment Software companies continue to far outpace the Nasdaq in EV/Revenue. In 2018, dips in the index correlated closely to negative public announcements. In March, Micro Focus (LSE:MCRO) announced the departure of CEO Chris Hsu and in June the company announced that the integration of Hewlett Packard Enterprise Company (NYSE:HPE), acquired in 2016 for $8.8 billion, was behind schedule. Additionally, Atlassian (ASX:ALU) reported below average earnings in October. Despite these hits, the index closed 2018 at 7.2x revenue compared to the Nasdaq’s 2.8x.