cloudedjudgement.substack.com · 2020-12-18 · 1994d

Clouded Judgement: SaaS Valuation & Acceleration Analysis (Q3 2020)

This weekly SaaS newsletter analyzes Q3 2020 cloud business earnings, finding that a majority of companies accelerated revenue growth compared to Q2, suggesting digital transformation momentum. The piece provides detailed valuation multiples, operating metrics benchmarks, and Rule of 40 analysis across 40+ public SaaS companies, establishing median valuations of 17.7x NTM revenue with significant dispersion by growth rate.

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

Metrics in this report

CAC Payback Period

24months

median

Public SaaS companies

EV/NTM Revenue Multiple

17.7x

median

Broad SaaS cohort as of Q3 2020

EV/NTM Revenue Multiple

33.7x

median

High-growth SaaS (>30% NTM growth)

EV/NTM Revenue Multiple

19.1x

median

Mid-growth SaaS (15-30% NTM growth)

EV/NTM Revenue Multiple

7.9x

median

Low-growth SaaS (<15% NTM growth)

EV/NTM Revenue Multiple

45.9x

top-quartile

Top 5 SaaS companies by multiple

EV/NTM Revenue Multiple

15.7x

average

3-month trailing average

EV/NTM Revenue Multiple

12.4x

average

1-year trailing average

FCF Margin

5percent

median

Public SaaS companies

G&A % of Revenue

18percent

median

Public SaaS companies

Gross Margin

74percent

median

Public SaaS companies

LTM Revenue Growth Rate

30percent

median

Public SaaS companies

NTM Revenue Growth Rate

21percent

median

Public SaaS companies

Net Revenue Retention

115percent

median

Public SaaS companies

Operating Margin

-14percent

median

Public SaaS companies

R&D % of Revenue

25percent

median

Public SaaS companies

Sales & Marketing % of Revenue

44percent

median

Public SaaS companies