      cloudedjudgement.substack.com · 2021-08-20
      · 1749d
    

Clouded Judgement: Q2 2021 SaaS Growth Acceleration & Valuation Analysis

Analysis of Q2 2021 cloud software earnings showing 86% of companies accelerated revenue growth YoY, with detailed breakdown of SaaS valuation multiples, operating metrics, and unit economics benchmarks. The article demonstrates median EV/NTM revenue multiples of 15.0x overall with high-growth companies commanding 31.4x, while operating performance shows median 24% NTM growth but negative 17% operating margins.

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Metrics in this report

CAC Payback Period

25months

median

Public SaaS companies on gross profit basis

EV/NTM Revenue Multiple

15.0x

median

Public SaaS companies as of August 2021

EV/NTM Revenue Multiple

61.5x

top-quartile

High-growth SaaS companies (Snowflake, Sentinel One, Bill.com) as of August 2021

EV/NTM Revenue Multiple

31.4x

median

SaaS companies with >30% projected NTM growth

EV/NTM Revenue Multiple

13.9x

median

Mid-growth SaaS companies (15%-30% projected growth)

EV/NTM Revenue Multiple

5.3x

median

Low-growth SaaS companies (<15% projected growth)

Free Cash Flow Margin

9percent

median

Public SaaS companies

G&A as % of Revenue

18percent

median

Public SaaS companies

Gross Margin

74percent

median

Public SaaS companies

LTM Revenue Growth Rate

31percent

median

Public SaaS companies

NTM Revenue Growth Rate

24percent

median

Public SaaS companies

Net Revenue Retention

119percent

median

Public SaaS companies

Operating Margin

-17percent

median

Public SaaS companies

R&D as % of Revenue

25percent

median

Public SaaS companies

Sales & Marketing as % of Revenue

44percent

median

Public SaaS companies