cloudedjudgement.substack.com · 2021-06-25 · 1805d

Clouded Judgement

This article provides a comprehensive analysis of Q1 2021 cloud software earnings, presenting valuation multiples, operating metrics, and benchmarks for public SaaS companies. The analysis shows median EV/NTM revenue multiples of 16.4x across the broader market with significant variation by growth rate (high-growth at 28.1x, mid-growth at 13.8x, low-growth at 5.8x), and benchmarks key operating metrics including 74% gross margins, 118% net retention, and 23% median NTM growth.

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Metrics in this report

CAC Payback Period

24months

median

Gross-margin adjusted, public SaaS companies

EV/NTM Revenue Multiple

16.4x

median

Overall public SaaS market as of Q1 2021

EV/NTM Revenue Multiple

47.9x

median

Top 5 most expensive public SaaS companies

EV/NTM Revenue Multiple

28.1x

median

High-growth SaaS (>30% NTM growth)

EV/NTM Revenue Multiple

13.8x

median

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

EV/NTM Revenue Multiple

5.8x

median

Low-growth SaaS (<15% NTM growth)

FCF Margin

10percent

median

Public SaaS companies

G&A Expense Ratio

18percent

median

Public SaaS companies as % of revenue

Gross Margin

74percent

median

Public SaaS companies

LTM Revenue Growth

30percent

median

Public SaaS companies (trailing)

NTM Revenue Growth

23percent

median

Public SaaS companies (forward-looking)

Net Revenue Retention

118percent

median

Public SaaS companies

Operating Margin

-13percent

median

Public SaaS companies (negative)

R&D Expense Ratio

25percent

median

Public SaaS companies as % of revenue

S&M Expense Ratio

43percent

median

Public SaaS companies as % of revenue