      cloudedjudgement.substack.com · 2021-08-06
      · 1763d
    

Clouded Judgement

This article analyzes cloud software company valuations, multiple expansion trends from Feb 2020 to Aug 2021, and key SaaS operating metrics. The author emphasizes the importance of reading footnotes for Non-GAAP metrics like Net Retention Rate, which can vary significantly in calculation methodology across companies.

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Metrics in this report

CAC Payback Period

25months

median

Public SaaS companies on gross-profit basis as of Aug 2021

EV/NTM Revenue Multiple (High Growth >30%)

33.3x

median

High-growth public SaaS companies (>30% NTM growth) as of Aug 2021

EV/NTM Revenue Multiple (Low Growth <15%)

5.4x

median

Low-growth public SaaS companies (<15% NTM growth) as of Aug 2021

EV/NTM Revenue Multiple (Mid Growth 15-30%)

14.6x

median

Mid-growth public SaaS companies (15-30% NTM growth) as of Aug 2021

EV/NTM Revenue Multiple (Overall)

16.2x

median

All public SaaS companies as of Aug 2021

Free Cash Flow Margin