Qualtrics IPO
With qualtrics public IPO, is SAP reducing it's share? What you think is the reason, is it going to help in long run?
What does this mean for employees?
Necessary to keep all the talent from leaving
How does it help in retaining the talent?
Maybe they can offer them equity in a faster-growing Company? Not that SAP stock has been a slouch the last couple of years. I wonder if they will keep SAP benefits, since I heard qualtrics benefits were fairly poor before the acquisition.
Does this help in consolidating/interesting qualtrics with sap? Does this mean sap accepts that it was overvalued and now wants to reduce it's share holding percent??
It's the opposite. SAP will get a windfall. The value of Qualtrics had at least doubled over the last 2 years. SAP could get most of the acquisition price and still maintain majority ownership.
I think it means that we aren’t a good fit for sap core business.
Probably a good move. Qualtrics value had doubled since SAP took over, so they essentially got 51% of Qualtrics for free if they follow through. I guess they think qualtrics can grow faster independently and they figure better to own 51% of a larger pie than 100% of a smaller pie. Probably good for employees to the extent qualtrics stock grows faster than SAP stock.
How bad is this for Qualtrics people who were there before the SAP acquisition? Do you still have Qualtrics options or are you just sitting on a bunch of SAP shares now?
All Q RSUs were bought out by SAP so they don’t exist now. I think the biggest question is what happens to the SAP stock payments now
Our shares got converted to a fixed price but were / are vesting on the normal 4 year schedule and paid in cash.
This seems very risky for employees. Layoffs might be on way.
The opportunity is huge!! When you can serve / partner with multiple products / services , why lock yourselves with one ERP vendor . Qualtrics should think about APIs and that’s it ... with digitizations running at 5x due to covid , overall experience management can be a matter of death / life for many companies . Qualtrics can provide that as a horizontal service , which wouldn’t be possible because SAP competes with some in this space . Moreover , from efficient capital allocation POV , it’s fine to have a 50%+ YOY running asset to have $$ coming from a saas loving market ! SAP can continue to benefit by embedding the services ( which they currently are trying anyways ) of qualtrics , and at the same time let qualtrics chase bigger market without being bogged down. This free up some capital for SAP, which it can use to innovate its core products and look for more strategic acquisition opportunities. Don’t forget , with qualtrics growth , we will continue to get FCF .. and qualtrics will appear on SAP balance sheet with 51% ownership ( translated into the value that market offers ) . It is a very good move IMO !!!
This is an explanation when you have the answer but don’t know the steps to get to that answer. Basically your response is BS. Knowing Q it’s not APIs or nothing unique they have. It should have part of the intelligent enterprise conversation which it could not be because Sap wants to recoup some of the cost.
Love how cogent is your argument .. I’m sure you are some T5 VP working for 15 years at SAP. The quality of your argument ( or lack of it ) has all elements of what I hear from people at SAP. It’s like echo chambers ... go out meet young people , learn to view the trend and how to ride it . You will be happy
If you allow Q to run its own business, to chase big market on it's own, then where is OneSAP vision, where is one consolidated solution approach, where is one team game plan!! I feel main take away is sap wants to get back some of the money "wrongly" invested earlier and ride on share price as long as Q shines!! And use this money for R&D or innovations of other products that can be integrated and bring better customer value......
Qualtrics leadership has long fantasized about an IPO. The CEO just wants to ring the bell and check the box of running a publicly traded company so he can be on par with his Utah Valley peers.
This is probably the lamest reason for going public. And doubt if SAP would do it for that.
No trust me.