May 2019 Movements in the SMB Software Index

SMB Index

JUN 11, 2019 - Danial Shaikh

May represented another slow month for the SurePath SMB Software Index, gaining just 1.8%. However, it compared favorably to the S&P 500 which lost nearly 6%, the Nasdaq which lost over 7%, and the Dow Jones which lost over 6%.

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.

After Shopify replaced Atlassian as a member of the top 5 last month, Atlassian made it back into the top 5, this time replacing Square. Square has had a relatively poor 2019 compared to the Index at large, having gained only 8% as of the end of May (though this has increased to over 20% as of this article’s publishing), compared to nearly 40% for the broader SMB Software Index, nearly 100% for Shopify, and over 40% for Atlassian.

The Top Gainers and Losers for May

In May, the best performer of all index companies was Atlassian, which grew ~16% during the period driven by an upgraded price target from Goldman Sachs. The poorest performer was Stamps.com, which lost over 60% in May after announcing that the US Postal Service would be renegotiating service agreements with several of Stamps.com reseller partners. This was after it announced that it would be ending its long-standing exclusive partnership with USPS in February. The stock is down nearly 80% this year.

Here’s how all index companies stacked up in May


You can follow the SurePath SMB Index in real time at: http://www.surepathcapital.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

Get Our Reports & Insights
Sent Straight to Your Inbox