Clouded Judgement
This article analyzes SaaS valuation trends and capital markets activity as of June 2020, highlighting a surge in convertible debt offerings ($8B+ since Q1 2020) as the preferred financing method for public cloud companies. The author provides detailed benchmarks for IPO-ready SaaS companies and tracks valuation multiples, operating metrics, and share price movements across top cloud stocks. The piece establishes foundational metrics and frameworks for evaluating SaaS business health and capital structure decisions.
Metrics in this report
51%percent
median
SaaS IPO candidates (36 companies)
37.5%percent
Convertible debt offerings Q1-Q2 2020
0.125%percent
Convertible debt offerings Q1-Q2 2020
36.7multiple
median
Top 10 public SaaS companies by valuation
27.3multiple
median
High-growth SaaS (>30% projected growth)
15.6multiple
median
Mid-growth SaaS (15-30% projected growth)
9.0multiple
median
Low-growth SaaS (<15% projected growth)
18%percent
median
SaaS IPO candidates (36 companies)
25months
median
SaaS IPO candidates (36 companies)
72%percent
median
SaaS IPO candidates (36 companies)
29months
median
Public SaaS companies (week of June 26, 2020)
73%percent
median
Public SaaS companies (week of June 26, 2020)
117%percent
median
Public SaaS companies (week of June 26, 2020)
-16%percent
median
Public SaaS companies (week of June 26, 2020)
121%percent
median
SaaS IPO candidates (36 companies)
-31%percent
median
SaaS IPO candidates (36 companies)
28%percent
median
SaaS IPO candidates (36 companies)
25points
median
SaaS IPO candidates (36 companies)
53%percent
median
SaaS IPO candidates (36 companies)