Every week I’ll provide updates on the latest trends in SaaS valuations, earnings announcements, and highlight any noteworthy news. Follow along to stay up to date! Highlight of the Week - Earning Season! Next week kicks off SaaS earnings season. Below is a calendar of earnings dates. Many SaaS businesses pulled back some last week, and then recovered a bit in the first half of this week before experiencing a smaller pullback end of week. Lots of movement going into earnings! In almost poetic fashion Shopify (who has held the top spot for the highest SaaS multiple for the entire quarter) will kick off earnings season with a PRE MARKET release on Wednesday 7/29. Buckle up! Every SaaS company to report will have gone through an entire quarter of Covid-affected business. We’ll really see how immune software is to the pandemic shortly! My take is the tier 1, cream of the crop, companies will surprise us even more than expectations (I really think the forward revenue estimates for a number of businesses are WAY to low), while many companies will fail to live up to elevated expectations. And I don’t simply mean this group will “miss earnings.” I think the buy-side has already factored in heavy beats for the universe of SaaS businesses (why pretty much every SaaS stock has run up over the last couple months), and I don’t think every businesses will beat with the margin they’re expected to. I’m not anticipating Covid to be a tide that lifts all ships. I think it’s a tide that will disproportionately lift some ships!
@Jamin excellent content and great inside in Saas growth to understand in multiples can we also post on India Saas Data which we have have big community here and they would be equally excited to follow .. Your Thought ?.We can help on some data points if you would need so ..Population is too large who's moved to Bay but local Founders are looking the data points as well ...
@Jamin - awesome content! Would be great if you could include nominal revenue in the comps analysis at the end to better contextualize growth / multiples.
@Jamin- completely agree that investors are pricing in heavy beats for the sector I’m general and I think there will be a lot of disappointment.
Also, looks like operating margins deteriorating (do companies even care about Rule of 40 anymore lol?)...I think companies are throwing money at S&M to chase growth as they get pressure from the street. And look at Adj. CAC Payback- pretty poor for many companies. @Jamin, what are you thoughts?
Thanks for the weekly reports! Will $LVGO be added to the reports?
@Jamin excellent content and great inside in Saas growth to understand in multiples can we also post on India Saas Data which we have have big community here and they would be equally excited to follow .. Your Thought ?.We can help on some data points if you would need so ..Population is too large who's moved to Bay but local Founders are looking the data points as well ...
@Jamin - awesome content! Would be great if you could include nominal revenue in the comps analysis at the end to better contextualize growth / multiples.
@Jamin- completely agree that investors are pricing in heavy beats for the sector I’m general and I think there will be a lot of disappointment.
Also, looks like operating margins deteriorating (do companies even care about Rule of 40 anymore lol?)...I think companies are throwing money at S&M to chase growth as they get pressure from the street. And look at Adj. CAC Payback- pretty poor for many companies. @Jamin, what are you thoughts?