      cloudedjudgement.substack.com · 2025-05-16
      · 384d
    

Clouded Judgement: Q1 2025 SaaS Net New ARR and Valuation Multiple Analysis

Analysis of Q1 2025 earnings across 30 public SaaS companies reveals meaningful declines in net new ARR compared to Q1 2024, with 5 companies experiencing quarter-over-quarter ARR contraction. The article provides comprehensive valuation multiples analysis, showing a median EV/NTM revenue multiple of 5.5x across the broader market and 21.8x for top performers, with operating metrics benchmarks for the SaaS industry.

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Metrics in this report

CAC Payback Period

43months

median

Public SaaS companies

EV / NTM Revenue Multiple

5.5multiple

median

Overall SaaS market

EV / NTM Revenue Multiple

21.8multiple

median

Top 5 SaaS companies by valuation

EV / NTM Revenue Multiple

18.8multiple

median

High growth SaaS (>25% NTM growth)

EV / NTM Revenue Multiple

10.0multiple

median

Mid-growth SaaS (15-25% NTM growth)

EV / NTM Revenue Multiple

4.2multiple

median

Low-growth SaaS (<15% NTM growth)

FCF Margin

17percent

median

Public SaaS companies

G&A Spend as % Revenue

16percent

median

Public SaaS companies

Gross Margin

76percent

median

Public SaaS companies

LTM Growth Rate

15percent

median

Public SaaS companies

NTM Growth Rate

11percent

median

Public SaaS companies

Net Retention Rate

108percent

median

Public SaaS companies

Operating Margin

-4percent

median

Public SaaS companies

R&D Spend as % Revenue

24percent

median

Public SaaS companies

S&M Spend as % Revenue

38percent

median

Public SaaS companies