cloudedjudgement.substack.com · 2020-08-21 · 2113d

Clouded Judgement

This SaaS market update analyzes CIO budget trends from a Credit Suisse survey showing accelerated cloud adoption post-COVID, offset by near-term project deferrals due to buyer caution and market uncertainty. The article provides earnings summaries, valuation multiples benchmarks (median 15.1x NTM revenue), and operating metrics across the SaaS cohort, revealing tension between long-term digital transformation acceleration and short-term deal delays.

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Metrics in this report

CAC Payback Period

29months

median

SaaS cohort, August 2020

Digital Transformation Initiatives - Project Deferrals

27percent

CIOs surveyed on COVID-19 impact, July 2020

FCF Margin

4percent

median

SaaS cohort, August 2020

Gross Margin

73percent

median

SaaS cohort, August 2020

LTM Revenue Growth Rate

30percent

median

SaaS cohort, August 2020

NTM Revenue Growth Rate

19percent

median

SaaS cohort, August 2020

Net Revenue Retention

116percent

median

SaaS cohort, August 2020

Operating Margin

-16percent

median

SaaS cohort, August 2020

Public Cloud Budget Allocation (1-Year Expected)

25percent

average

Enterprise IT budgets, July 2020 survey

Public Cloud Budget Allocation (3-Year Expected)

38percent

average

Enterprise IT budgets, July 2020 survey

Public Cloud Budget Allocation (Current)

18percent

average

Enterprise IT budgets, July 2020 survey

SaaS Valuation Multiple (NTM Revenue)

15.1x

median

SaaS cohort, August 2020

SaaS Valuation Multiple (NTM Revenue)

32.0x

median

High-growth SaaS (>30% NTM growth)

SaaS Valuation Multiple (NTM Revenue)

17.3x

median

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

SaaS Valuation Multiple (NTM Revenue)

9.3x

median

Low-growth SaaS (<15% NTM growth)