cloudedjudgement.substack.com · 2020-09-25 · 2078d

Clouded Judgement

Weekly SaaS market analysis covering Q2 2020 subscription trends (post-COVID recovery, discount usage, evergreen renewals), valuation multiples across top 10 public SaaS companies (median 34.9x EV/NTM revenue), and emerging competitive threats like Microsoft's Azure Communication Services targeting Twilio. Article benchmarks SaaS metrics including growth rates, margins, and net retention across growth cohorts.

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Metrics in this report

CAC Payback Period

32months

median

SaaS unit economics

Discount Premium vs Prior Year

18percent

average

Q1-Q2 2020 subscription businesses vs 2019 baseline

Free Cash Flow Margin

4percent

median

SaaS benchmarks overall

Gross Margin

73percent

median

SaaS benchmarks across all growth cohorts

NTM Growth Rate

19percent

median

SaaS benchmarks

Net Revenue Retention

116percent

median

SaaS benchmarks

Operating Margin

-14percent

median

Top 10 public SaaS companies

SaaS Valuation Multiple (EV/NTM Revenue)

13.8x

median

Overall SaaS market as of September 2020

SaaS Valuation Multiple - High Growth Cohort

29.5x

median

SaaS companies with >30% projected NTM growth

SaaS Valuation Multiple - Low Growth Cohort

8.3x

median

SaaS companies with <15% projected NTM growth

SaaS Valuation Multiple - Mid Growth Cohort

15.8x

median

SaaS companies with 15-30% projected NTM growth

Top 10 SaaS Companies Valuation Multiple

34.9x

average

EV/NTM revenue for top 10 public SaaS companies (Zoom, Datadog, Bill.com, etc.)