March 2019 — Movements in the SMB Software Index
Compared to the rest of the quarter, March was a relatively slow month for the SurePath SMB Software Index. The index gained 4.5% in March, vs. gains in excess of 10% for both January and February. However, it continued to outpace various other indices, including the S&P 500 which gained 1.1%, the Nasdaq which gained 1.8%, and the Dow Jones which lost 0.4%.
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.
All the top constituents performed reasonably well during March, with Intuit gaining another 4.4%, after gaining over 15% in February having beaten Wall Street’s targets for its fiscal second quarter.
The Top Gainers and Losers for March
In March, the best performer of all constituents of the index was SurveyMonkey, which grew ~21% during the period after announcing its acquisition of Usabilla and the release of several positive analyst reports. The biggest loser of the month was Eventbrite, which lost nearly 40% of its market cap after it issued guidance for first-quarter 2019 revenue of between $80 million and $84 million, a range far below the consensus estimate of $91.3 million. Both SurveyMonkey and Eventbrite were added to the SMB Software Index at the beginning of March.
Here’s how all constituents stacked up in the month of March
You can follow the SurePath SMB Index in real time at: http://www.surepathcapital.com/smb-index
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