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Software Companies

SIC 7372 | NAICS 511210

The following guide to market research and industry analysis provides sources for industry trends and statistics, financial ratios, salary surveys, and more.

For guides to other industries, see our index.

Industry Analysis, Trends, Statistics, and Forecasts

Software Publishing Services  (view report)
Software Publishing by Type  (view reports)

Comprehensive market research reports provide in-depth industry analysis and five-year forecasts, with special focus on the underlying structure and external forces and relationships that affect industries and their performance. Report contents include:

  • Market size and characteristics
  • Key statistics and ratios
  • Current performance
  • Operating conditions
  • Competitive landscape
  • Major companies
  • Five-year growth forecast

Information resources available from this trade association include:

Industry Facts
Various sections provide an overview of the entertainment software industry, with topics covered including economic impact, sales and genre data, and game player data. All information is available free online.

Essential Facts About the Computer and Video Game Industry
Annual report provides information on gamer demographics, types of games played most often, how and where games are played, top selling computer and video games, current and historical sales, and total consumer spending on games, hardware, and accessories. Report can be viewed free online.

First Research
Computer / Entertainment and Games Software

First Research profiles provide analysis, statistics, and forecasts for a wide range of industries, with content sections including industry overview, recent developments, issues and challenges, business trends and opportunities, leading companies, executive insights, financial benchmarking information, and 5-year revenue growth forecast. Profiles are updated monthly; sample report is available online.

Standard & Poor's Industry Surveys
Computers: Software
Standard & Poor's survey provides in-depth coverage for this product sector, with topics covered including current business environment; industry profile, trends, and operations; how to analyze a company; key ratios and statistics; additional references; and comparative company analysis. Sample report is available online.

Gartner, Inc.
Software: Applications and Infrastructure / infrastructure
Comprehensive selection of research studies provide in-depth analysis of the applications and infrastructure product segments, with topics covered for specific products including market trends and insights, market share data, forecast analysis, emerging technology opportunities, and competitive information. Summary description and detailed table of contents for each report can be viewed free online.

GIA Research
Software  Search for above title
Comprehensive reports provides in-depth analysis of the market for this product sector in the U.S. and other countries, with product segments analyzed separately in individual reports including application server, server virtualization, data warehouse management, ERP, SaaS, and cloud-based productivity products. Summary description and detailed table of contents for each report are available online

Financial Benchmarking Data

Industry Financial Ratios
Software Publishers  Search for "511210"

Five-year financial statement analysis includes income statements, balance sheets, and key financial ratios, with data available by sales size range on a national, state, and metro area level.

  • Income and expense detail in dollars and percentages
  • Balance sheets in dollars and percentages
  • Cash flow analysis
  • Liquidity and working capital ratios
  • Profitability and return on investment ratios
  • Asset turnover and efficiency ratios
  • Capital structure and debt service ratios

Softletter Financial Handbook
Financial handbook provides financial and operating performance benchmarks for software companies, with measures covered including revenue, sales and marketing costs, general and administrative expenses, operating income, return on equity, and more. Detailed table of contents can be viewed free online.

More Resources ››

Compensation Surveys

Publications and Books / Store
Publications and books containing compensation data include "The Softletter Financial Handbook" (executive, management, and sales personnel), "The Sales Compensation Survey", "The Direct Sales Compensation and Efficiency Report", and "The Telesales Compensation and Efficiency Report". Summary descriptions and detailed table of contents for each publication can be viewed online.

U.S. Bureau of Labor Statistics
Occupational Outlook Handbook - Software Developers
Information provided for this occupational category includes a description of the nature of the work and the work environment, number and types of jobs, education and training requirements, wages and earnings, employment outlook, and sources for additional information. All information is available free online.

More Resources ››

Business Valuation Resources

The Handbook of Business Valuation
Chapter 28 - Valuing a Software Company
Thomas L. West and Jeffrey D. Jones, John Wiley & Sons, 1999
Business valuation handbook includes a number of chapters which address valuation issues specific to certain industries, with Chapter 28 addressing valuation issues specific to software companies. Chapter contents can be previewed online using's "Look Inside" feature.

Software Equity Group, LLC
Research Reports
Annual and quarterly research publications provide a comprehensive analysis of software company mergers and acquisitions, with topics covered including deal volume, valuations, public vs. private buyers, and more. Selected publications and executive summaries are available free online with registration.

Small Business Valuation Multiples

Software Companies

Comprehensive reference guide provides market-based business valuation multiples for small businesses in more than 200 industries. Valuation multiples are derived from actual business sales transactions as reported by BIZCOMPS®, with the primary focus on small companies priced at less than $1 million.

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