cloudedjudgement.substack.com · 2021-06-11 · 1819d

Clouded Judgement

This article provides a comprehensive analysis of SaaS valuation multiples as of June 2021, showing that cloud software companies trade at 41% above COVID highs and 71% above January 2020 levels. The analysis includes detailed benchmarking of top 10 cloud companies, operating metrics medians, and growth-adjusted valuation comparisons across the public SaaS cohort.

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Metrics in this report

CAC Payback

23months

median

Public SaaS companies (gross profit basis)

CAC Payback Period

23months

median

SaaS companies, gross profit basis

EV / NTM Revenue Multiple

15.3x

median

Overall public SaaS market

EV / NTM Revenue Multiple

42.7x

median

Top 5 public SaaS companies

EV / NTM Revenue Multiple

24.7x

median

High growth SaaS (>30% NTM growth)

EV / NTM Revenue Multiple

12.8x

median

Mid growth SaaS (15-30% NTM growth)

EV / NTM Revenue Multiple

5.1x

median

Low growth SaaS (<15% NTM growth)

EV / NTM Revenue Multiple

15.3x

median

Overall SaaS cohort, June 2021

EV / NTM Revenue Multiple

24.7x

median

High-growth SaaS (>30% NTM growth)

EV / NTM Revenue Multiple

12.8x

median

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

EV / NTM Revenue Multiple

5.1x

median

Low-growth SaaS (<15% NTM growth)

EV / NTM Revenue Multiple

54.5x

best-in-class

Snowflake (highest valuation in top 10)

FCF Margin

9percent

median

Public SaaS companies

Free Cash Flow Margin

9percent

median

SaaS companies at scale

G&A % of Revenue

18percent

median

SaaS companies at scale

G&A Spend

18percent

median

Public SaaS companies as % of revenue

Gross Margin

74percent

median

Public SaaS companies

Gross Margin

74percent

median

SaaS companies at scale

LTM Revenue Growth

30percent

median

Public SaaS companies

LTM Revenue Growth

30percent

median

SaaS companies at scale

NTM Revenue Growth

24percent

median

Public SaaS companies

NTM Revenue Growth

24percent

median

SaaS companies at scale

Net Revenue Retention

118percent

median

Public SaaS companies

Net Revenue Retention

118percent

median

SaaS companies at scale

Operating Margin

-13percent

median

Public SaaS companies

Operating Margin

-13percent

median

SaaS companies at scale

R&D % of Revenue

25percent

median

SaaS companies at scale

R&D Spend

25percent

median

Public SaaS companies as % of revenue

S&M % of Revenue

43percent

median

SaaS companies at scale

Sales & Marketing Spend

43percent

median

Public SaaS companies as % of revenue