cloudedjudgement.substack.com · 2021-03-05 · 1917d

Clouded Judgement: SaaS Valuation Analysis & Okta-Auth0 M&A (Mar 2021)

Weekly SaaS market analysis featuring the $6.5B Okta-Auth0 acquisition, quarterly earnings results across 8 companies, and comprehensive valuation multiple benchmarking showing median 16.6x EV/NTM revenue with 0.68 R² correlation to growth. Provides operating metrics and financial profiles for top SaaS companies with multiples ranging from 5.0x (low growth) to 28.9x (high growth).

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Metrics in this report

CAC Payback Period

22months

median

Public SaaS companies (gross-margin adjusted)

EV/NTM Revenue Multiple

16.6x

median

Overall SaaS market (as of Mar 2021)

EV/NTM Revenue Multiple

28.9x

median

High-growth SaaS (>30% NTM growth)

EV/NTM Revenue Multiple

16.0x

median

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

EV/NTM Revenue Multiple

5.0x

median

Low-growth SaaS (<15% NTM growth)

Free Cash Flow Margin

8percent

median

Public SaaS companies

General & Administrative Spend

18percent of revenue

median

Public SaaS companies

Gross Margin

73percent

median

Public SaaS companies

LTM Revenue Growth

30percent

median

Public SaaS companies

NTM Revenue Growth

23percent

median

Public SaaS companies

Net Revenue Retention

115percent

median

Public SaaS companies

Okta-Auth0 Transaction Value

6.5billion USD

Stock consideration at $276.21 per share

Operating Margin

-15percent

median

Public SaaS companies

Research & Development Spend

25percent of revenue

median

Public SaaS companies

Sales & Marketing Spend

44percent of revenue

median

Public SaaS companies