The number of entries on this week’s Business Journal lists of fastest-growing private companies based in Orange County is down by about 10% from a year ago.
That’s about the only key data point that’s fallen when it comes to the 153 companies that are ranked by growth in revenue and broken up into large, midsize and small categories that form the basis of this week’s Special Report, which starts on page 21.
The drop in the number of companies that earned spots on the latest lists comes as no surprise after several years of impressive increases in the ranks of fastest growers. Our rankings require a growth rate of 15% over a two-year period (see About Business Journal’s Annual Fastest-Growing Private Companies List, page 28). The total went from 69 listed companies in 2010—a recession-wrought decline of 31%—to a historic high of 174 last year.
Notching the top line growth required for a spot on the lists gets tougher every year when companies are racking up steady revenue gains. Indeed, this year’s dip could be viewed as a backhanded acknowledgement of Orange County’s leading role in an economic recovery that is now at least four years in the making, a stretch that has seen California regain a growth footing and has restored the Golden State’s status as mecca for ambitious companies with a penchant for job creation.
Jobs
Jobs provide an apt example of the significant strides made by this year’s roster of fast growers despite being shorter than 2014’s group. This year’s entries topped last year’s on total employment in OC, despite having 21 fewer entries overall.
The 153 companies on this year’s lists combined for 21,704 jobs here, up 57% over their own two-year measuring stick. The total also was—by more than 5,000 jobs—a hike of 32% from last year’s roster.
This year’s companies combined for $18.4 billion in revenue, a 36% gain over two years.
That was down by about 2% compared with 2014’s longer list of entries, but this year’s crop showed a big increase on average annual revenue, with about $120 million per company versus approximately $107 million.
The gains came across all three categories of companies, which set minimums of $100 million in revenue for the 12 months ended June 30 for large companies; between $10 million and $99.9 million for midsize; and less than $10 million for small enterprises.
The big companies were led by Costa Mesa-based rehabilitation specialist Solid Landings Behavioral Health Inc., which posted revenue of $125 million for the 12 months ended June 30. That’s a hike of 1,036% compared with $11 million for the same period two years earlier (see story, page 1). Solid Landings and the other 16 companies that made the rankings in the large category combined for $15.7 billion in revenue, a gain of 30%. They together accounted for 12,241 jobs, a 48% hike.
The large companies averaged about $1.3 million in revenue per job.
Midsize Companies
Irvine-based Seta International—which specializes in custom software development via the cloud, website development and mobile offerings—topped the midsize category. The company had revenue of $22.5 million, up 2,547%.
The midsize category had the most entries overall, with 71 companies that combined for $2.4 billion in revenue, up 84%. They collectively had 7,729 jobs, a 69% gain.
The midsize companies averaged about $314,000 in revenue per job.
Small companies were led by Santa Ana-based J-Squared General Contractors Inc., which has grown 1,050% over two years for $4.6 million in annual revenue.
The 65 entries in the “small” category scored the biggest two-year percentage increase in revenue, a 94% hike to $310 million. They combined for 1,734 jobs, up 78%.
The small companies average approximately $179,000 in revenue per job.
The three top-ranked companies—representing the healthcare industry, technology and construction—provide a clear example of the range of OC’s economic base.
This week’s issue provides more information, with the lists and reports giving an overview of each category in our Special Report, which starts on page 21.
