April 2019 Movements in the SMB Software Index

SMB Index

MAY 09, 2019 - Danial Shaikh

April was a slow month of growth for the SurePath SMB Software Index, gaining just 1.6%, compared to the S&P 500 which gained 2%, the Nasdaq which gained 2.6%, and the Dow Jones which gained 1%.

Drivers of Movement

The SCP SMB Software Index is a weighted based on the market capitalization of the 37 companies that are included in the index. The market cap of the top 5 companies accounts for more than half of the total market cap combined index and therefore, the movement of these 5 companies influence the SMB Index as a whole.

By the end of the month, Shopify had replaced Atlassian as a member of the top 5 after gaining more than 18% over the period. This was ahead of its April 30, 2019 earnings release that eventually sent its stock to an all-time high of $266.72 (USD) per share. The company now has a market cap north of $27B, quickly catching up to competitor Square, which lost nearly 5% during the month and sits at a market cap of ~ $30B.

The Top Gainers and Losers for April

In April, the best performer of all index companies was Eventbrite, which grew ~24% during the period (after a particularly bad performance in March, where it lost nearly 40% of its market cap). However, Eventbrite quickly erased April’s gains after actually releasing its Q1 2019 results and announcing that it would begin searching for a new CFO. The stock is now trading at nearly half the price it was when the company went public late last year.

During April itself, Endurance was the poorest performer, losing nearly a quarter of its market cap ahead of its earnings release at the end of the month.

Here’s how all index companies stacked up in April

You can follow the SurePath SMB Index in real time at: http://surepath.wpengine.com/smb-index

At SurePath Capital Partners we help startups raise the capital needed to become market leaders. When the time is right, we help our clients achieve profitable, deliberate exit strategies. We only work with startups in SaaS and commerce. Across those segments we have a deep focus on companies serving the global SMB market. Say hello: info@surepathcapital.com

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