cloudedjudgement.substack.com · 2022-04-08 · 1518d

Clouded Judgement

This weekly cloud software industry update analyzes SaaS valuation multiples, operating metrics, and growth benchmarks across public companies as of April 2022. The article presents data showing median EV/NTM revenue multiples of 9.0x overall with significant compression from prior year highs, alongside operating metric benchmarks (26% median NTM growth, 74% gross margin, 120% net retention) and introduces growth-adjusted valuation analysis to contextualize relative valuations.

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Metrics in this report

CAC Payback Period

23months

median

Public SaaS companies (gross margin adjusted)

CAC Payback Period

23months

median

Public SaaS companies on gross profit basis, April 2022

EV / NTM Revenue Multiple

9.0x

median

All public SaaS companies tracked, April 2022

EV / NTM Revenue Multiple

28.9x

median

Top 5 highest-valued public SaaS companies, April 2022

EV/NTM Revenue Multiple

9.0xmultiple

median

Overall public SaaS cohort

EV/NTM Revenue Multiple

28.9xmultiple

median

Top 5 highest valuation SaaS companies

EV/NTM Revenue Multiple

12.3xmultiple

median

High-growth SaaS (>30% NTM growth)

EV/NTM Revenue Multiple

8.9xmultiple

median

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

EV/NTM Revenue Multiple

4.0xmultiple

median

Low-growth SaaS (<15% NTM growth)

FCF Margin

4percent

median

Public SaaS companies, April 2022

Free Cash Flow Margin

4%percent

median

Public SaaS companies

G&A as % of Revenue

19percent

median

Public SaaS companies, April 2022

General & Administrative Expense Ratio

19%percent

median

Public SaaS companies as % of revenue

Gross Margin

74%percent

median

Public SaaS companies

Gross Margin

74percent

median

Public SaaS companies, April 2022

High-Growth SaaS EV / NTM Revenue Multiple

12.3x

median

Companies with >30% projected NTM growth, April 2022

LTM Revenue Growth

33%percent

median

Public SaaS companies (last twelve months)

LTM Revenue Growth Rate

33percent

median

Public SaaS companies, April 2022

Low-Growth SaaS EV / NTM Revenue Multiple

4.0x

median

Companies with <15% projected NTM growth, April 2022

Mid-Growth SaaS EV / NTM Revenue Multiple

8.9x

median

Companies with 15-30% projected NTM growth, April 2022

NTM Revenue Growth

26%percent

median

Public SaaS companies (NTM consensus)

NTM Revenue Growth Rate

26percent

median

Public SaaS companies, April 2022

Net Revenue Retention

120%percent

median

Public SaaS companies

Net Revenue Retention (NRR)

120percent

median

Public SaaS companies, April 2022

Operating Margin

-19%percent

median

Public SaaS companies

Operating Margin

-19percent

median

Public SaaS companies, April 2022

R&D as % of Revenue

26percent

median

Public SaaS companies, April 2022

Research & Development Expense Ratio

26%percent

median

Public SaaS companies as % of revenue

S&M as % of Revenue

45percent

median

Public SaaS companies, April 2022

Sales & Marketing Expense Ratio

45%percent

median

Public SaaS companies as % of revenue