AI Index Funds
Elite SaaS Retention Index (II)

Index Performance

-10.90%
Elite SaaS Retention Index (II)
+0.16%
TMLARGE

Overview

Description

Software as a Service (SaaS) companies with best-in-class go-to-market (GTM) strategies, exhibiting Net Dollar Retention (NDR) rates of 120% and higher, serve as a litmus test for robust customer satisfaction and product-market fit. An NDR rate over 120% typically indicates that existing customers not only stick with the service but also expand their spending over time, showcasing a successful GTM approach that encompasses effective customer acquisition, seamless onboarding processes, ongoing engagement, and superior support systems. This high retention rate is a crucial driver for sustainable growth and profitability in the SaaS industry, as it implies lower customer acquisition costs relative to the lifetime value of customers. Additionally, SaaS companies that achieve such high NDR rates are likely benefiting from strong network effects, essential product integrations, and a focus on consistently delivering value through iterative product advancements, which all contribute to a compelling value proposition for their users. Investing in subcategories within the high NDR SaaS theme requires focusing on sectors where customer stickiness and upsell opportunities are inherently high. Notable investable subcategories include [[Enterprise Resource Planning (ERP) SaaS]], which is integral to operations and thus sees regular upsells; [[Customer Relationship Management (CRM) SaaS]], which benefits from continuous adoption across sales and marketing departments; [[Cybersecurity SaaS]], an increasingly critical component of enterprise and SMB operations with the rise in cyber threats; [[Healthcare SaaS]], which is seeing increased demand for digital health solutions and integration with various healthcare systems; [[E-commerce platform SaaS]], offering scalable solutions to businesses striving to grow online sales; and [[Remote Work Management SaaS]], which has become essential in the new normal of hybrid work environments. These areas demonstrate the potential for high customer retention rates and expansion, given their essential nature and deep integration into customer workflows. This index was generated with help from Thematic Analyst.

  • Inception Date06/06/2024
  • WeightingEqual
  • # of holdings22
What's inside?

Holdings

All holdings as of June 12, 2024
CSV download
CrowdStrike Holdings, Inc. (CRWD)5.07%$88.80B32.99%75.57%21.41
Datadog, Inc. (DDOG)4.84%$35.44B26.89%81.95%18.68
Cloudflare, Inc. (NET)4.71%$21.87B30.47%77.54%23.46
Zscaler, Inc. (ZS)4.70%$28.36B32.09%78.47%12.63
Gitlab, Inc. (GTLB)4.67%$5.78B33.35%88.90%11.71
Informatica, Inc. (California) (INFA)4.62%$7.33B6.34%70.78%7.23
Fair Isaac Corp. (FICO)4.61%$32.50B14.08%79.89%20.80
Nutanix, Inc. (NTNX)4.60%$13.03B16.94%84.80%6.99
Bentley Systems, Inc. (BSY)4.54%$14.63B7.43%79.03%14.98
Okta, Inc. (OKTA)4.53%$14.35B19.11%76.01%6.14
Procore Technologies, Inc. (PCOR)4.53%$9.53B26.18%81.74%11.22
F5, Inc. (FFIV)4.51%$9.77B-3.10%77.69%3.83
Elastic NV (ESTC)4.51%$11.25B18.55%73.79%7.65
CCC Intelligent Solutions Holdings, Inc. (CCCS)4.50%$7.25B10.89%65.98%8.83
Dynatrace, Inc. (DT)4.45%$13.91B23.48%79.82%9.18
Bill Holdings, Inc. (BILL)4.45%$5.49B18.52%78.37%5.56
DoubleVerify Holdings, Inc. (DV)4.42%$3.09B14.84%73.33%10.07
HubSpot, Inc. (HUBS)4.40%$29.99B23.08%84.60%13.79
Snowflake, Inc. (SNOW)4.40%$43.02B32.89%65.71%16.11
Smartsheet, Inc. (SMAR)4.37%$6.09B19.60%81.63%4.57
UiPath, Inc. (PATH)4.29%$5.79B15.72%83.31%6.61
Zoom Video Communications, Inc. (ZM)4.27%$16.57B3.25%70.70%2.62
Market data by FactSet