Clouded Judgement

SaaS revenue multiples compressed from 15x to 13x as Q2 earnings revealed that the anticipated COVID-driven growth boost failed to materialize, with most companies experiencing revenue deceleration despite accelerating digital transformation. The article analyzes whether Q3 will see a rebound from pushed-out deals or if multiples will regress toward historical 5-10x norms. Key metrics show median SaaS companies trading at 12.9x NTM revenue with 19% median NTM growth, 73% gross margins, and 117% net retention.