Every week I’ll provide updates on the latest trends in SaaS valuations, earnings announcements, and highlight any significant news. Follow along to stay up to date!

Top 10 EV / NTM Revenue Multiples

Top 10 Weekly Share Price Movement

Update on Multiples

SaaS businesses are valued on a multiple of their revenue - in most cases the projected revenue for the next 12 months. Multiples shown below are calculated by taking the Enterprise Value (market cap + debt - cash) / NTM revenue. In the buckets below I consider high growth >30% projected NTM growth, mid growth 15%-30% and low growth <15%

Overall Stats:

• Overall Median: 13.6x

• Top 5 Median: 34.5x

• 3 Month Trailing Average: 13.8x

• 1 Year Trailing Average: 11.1x

Bucketed by Growth:

• High Growth Median: 27.8x

• Mid Growth Median: 15.4x

• Low Growth Median: 8.3x

Operating Metrics

• Median NTM growth rate: 19%

• Median LTM growth rate: 31%

• Median Gross Margin: 73%

• Median Operating Margin (15%)

• Median FCF Margin: 4%

• Median Net Retention: 116%

• Median CAC Payback: 32 months

News

• Twilio announced that Lybra Clemons will join the company as its first Chief Diversity, Inclusion and Belonging Officer. 

• Anaplan announced new intelligence capabilities with their PlanIQ product for predictive forecasting and agile scenario planning

• Five9 announced their VoiceStream product that will help customers leverage the power of real-time voice

• Medallia announced a $500M convertible notes offering

• Medallia acquired Sense360, an consumer insights platform, for $44M

• Veeva formed a board committee to explore becoming a public benefit corporation

• Slack announced the appointment of Nadia Rawlinson to its Executive Team as Slack’s Chief People Officer

• Fastly Named Doniel Sutton as Chief People Officer

Comps Output

Rule of 40 shows LTM growth rate + LTM FCF Margin. FCF calculated as Cash Flow from Operations - Capital Expenditures

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