The global enterprise software market has vast potential for growth which should carry over into 2019. Spending on enterprise software is forecasted to increase by 9.5% this year to $389 billion, up from 8.9% growth last year, according to Gartner. Segments of the market that are doing well are analytics, performance management software, business process management and audit software.
- Current revenue growth rate is less than the average of the last 3 years, indicating that the market may be flattening or declining
- Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin exceeds the average of the last 3 years EBITDA margin, a condition that may attract new entrants