      ICONIQ Capital · 2024-02-09
      · 846d
    

SaaS IPO Valuation Metrics and Market Dynamics: 2024 Outlook

ICONIQ Capital's analysis of 115 software IPOs over a decade reveals a fundamental shift in SaaS valuation metrics from growth-at-all-costs (2020-2021) to profitable growth prioritization (2023-2024). The study identifies Rule of 40, revenue growth, and Net Dollar Retention as the primary valuation drivers, with 2023 multiples returning to pre-2020 historical norms despite different metric weightings.

6 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

IPO Sample Size

115IPOs

analyzed

software companies over past decade

Instacart Post-IPO Stock Performance

-15%

reported

since IPO launch

Klaviyo Customer Acquisition Cost Payback Period

14months

reported

SaaS company pre-IPO efficiency metric

Klaviyo IPO Float as Percentage of Fully Diluted Market Cap

7%

reported

vs. typical 10-15% range

Klaviyo Net Dollar Retention Rate

119%

reported

SaaS company expansion efficiency

Typical Investor Meetings Pre-IPO (2020-2021)

30meetings

average

SaaS IPO preparation