cloudedjudgement.substack.com · 2021-04-23 · 1868d

Clouded Judgement

This article analyzes SaaS valuation trends in April 2021, examining the decoupling of cloud software multiples from 10-year Treasury yields, IPO performance (particularly UiPath), and detailed benchmarking of SaaS metrics including growth, margins, and unit economics across public cloud companies. The analysis reveals median cloud multiples of 15.3x NTM revenue with significant variance based on growth rates, and provides operating metric benchmarks for the SaaS cohort.

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Metrics in this report

CAC Payback Period

19months

median

Public SaaS companies (gross-margin adjusted basis)

EV/NTM Revenue Multiple

57.6x

top

Snowflake (highest in cohort)

EV/NTM Revenue Multiple

37.5x

average

Top 10 cloud software companies by valuation

EV/NTM Revenue Multiple

33.9x

median

Top 10 cloud software companies by valuation

Free Cash Flow Margin

9percent

median

Public SaaS companies

G&A Spend

18percent of revenue

median

Public SaaS companies

Gross Margin

74percent

median

Public SaaS companies

LTM Revenue Growth

29percent

median

Public SaaS companies

NTM Revenue Growth

24percent

median

Public SaaS companies

NTM Revenue Multiple

15.3x

median

Public SaaS companies (overall cohort)

NTM Revenue Multiple

26.3x

median

High-growth SaaS (>30% projected NTM growth)

NTM Revenue Multiple

15.1x

median

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

NTM Revenue Multiple

6.4x

median

Low-growth SaaS (<15% projected NTM growth)

Net Revenue Retention

117percent

median

Public SaaS companies

Operating Margin

-11percent

median

Public SaaS companies

R&D Spend

25percent of revenue

median

Public SaaS companies

Sales & Marketing Spend

42percent of revenue

median

Public SaaS companies