cloudedjudgement.substack.com · 2021-04-30 · 1861d

Clouded Judgement: SaaS Valuation Multiples & Earnings Season Analysis (April 30, 2021)

Weekly SaaS earnings and valuation analysis covering Q1 2021 reports, EV/NTM revenue multiples across top 10 companies, and operating metrics benchmarks. The article demonstrates significant valuation dispersion based on growth rates (median 26.8x for high-growth vs. 6.5x for low-growth companies) and provides Rule of 40 analysis revealing median operating margins of -12% despite strong FCF contribution.

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Metrics in this report

1-Year Rolling Average EV/NTM Revenue Multiple

14.8multiple

average

SaaS market as of April 2021

3-Month Rolling Average EV/NTM Revenue Multiple

16.5multiple

average

SaaS market as of April 2021

CAC Payback (GM-Adjusted)

20months

median

Public SaaS companies

CAC Payback Period

20months

median

SaaS peer group on subscription revenue basis

EV/NTM Revenue Multiple

15.4multiple

median

Overall SaaS public companies as of January 2021

EV/NTM Revenue Multiple

26.8multiple

median

High-growth SaaS (>30% NTM growth)

EV/NTM Revenue Multiple

15.4multiple

median

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

EV/NTM Revenue Multiple

6.5multiple

median

Low-growth SaaS (<15% NTM growth)

EV/NTM Revenue Multiple

43.6multiple

median

Top 5 most highly valued SaaS companies

FCF Margin

8percent

median

Public SaaS companies in top 10 by valuation

Free Cash Flow Margin

8percent

median

Top 10 SaaS companies by valuation multiple

G&A Expense

18percent of revenue

median

SaaS peer group

G&A as % of Revenue

18percent

median

Public SaaS companies

Gross Margin

74percent

median

Top 10 SaaS companies by valuation multiple

Gross Margin

74percent

median

Public SaaS companies in top 10 by valuation, April 2021

LTM Revenue Growth

29percent

median

SaaS peer group

LTM Revenue Growth

29percent

median

Public SaaS companies

NTM Revenue Growth

24percent

median

SaaS peer group

NTM Revenue Growth

24percent

median

Public SaaS companies

Net Retention Rate

117percent

median

Public SaaS companies

Net Revenue Retention

117percent

median

SaaS peer group

Operating Margin

-12percent

median

Top 10 SaaS companies by valuation multiple

Operating Margin

-12percent

median

Public SaaS companies in top 10 by valuation

R&D Expense

25percent of revenue

median

SaaS peer group

R&D as % of Revenue

25percent

median

Public SaaS companies

S&M Expense

43percent of revenue

median

SaaS peer group

S&M as % of Revenue

43percent

median

Public SaaS companies

SaaS Valuation Multiple (EV/NTM Revenue)

15.4x

median

Public SaaS companies, April 2021

SaaS Valuation Multiple (EV/NTM Revenue)

16.5x

average

3-month trailing average, January 2021

SaaS Valuation Multiple (EV/NTM Revenue)

8.5x

median

January 2020

SaaS Valuation Multiple (EV/NTM Revenue) - High Growth

26.8x

median

SaaS companies with >30% NTM projected growth

SaaS Valuation Multiple (EV/NTM Revenue) - Low Growth

6.5x

median

SaaS companies with <15% NTM projected growth

SaaS Valuation Multiple (EV/NTM Revenue) - Mid Growth

15.4x

median

SaaS companies with 15-30% NTM projected growth