      cloudedjudgement.substack.com · 2024-10-11
      · 601d
    

Clouded Judgement: Budget Flush and SaaS Valuation Dynamics

The article analyzes whether a stronger-than-normal budget flush will occur at the end of 2024 in software spending, driven by stricter procurement discipline combined with growing enterprise budgets and economic improvement. It provides comprehensive SaaS valuation multiples, operating metrics, and benchmarks across the public cloud software universe, positioning Q4 2024 as a potential inflection point for consumption-based software companies.

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

Metrics in this report

10-Year Treasury Yield

4.1percent

As of article publication date, up ~15% from 3.6% in prior 2 weeks

CAC Payback Period (Gross Margin Adjusted)

41months

median

Public SaaS companies

Free Cash Flow Margin

15percent

median

Public SaaS companies with positive FCF

G&A % of Revenue

17percent

median

Public SaaS companies

Gross Margin

75percent

median

Public SaaS companies

LTM Revenue Growth Rate

16percent

median

Public SaaS companies

NTM Revenue Growth Rate

12percent

median

Public SaaS companies

Net Revenue Retention

110percent

median

Public SaaS companies

Operating Margin

-9percent

median

Public SaaS companies

R&D % of Revenue