Clouded Judgement

Weekly update on cloud software company valuations and trends showing overall median multiples have fallen below pre-COVID levels while high-growth software remains elevated at 52% above pre-COVID highs. Morgan Stanley CIO survey highlights robust software spending expectations (+5.0% in 2022), continued cloud migration (25% of workloads currently in public cloud, expected to reach 44% by 2024), with security software and cloud computing as top defensive IT priorities. Operating metrics analysis reveals median NRR of 119%, CAC payback of 25 months, and a Rule of 40 framework for evaluating SaaS health.