Clouded Judgement 9.18.20

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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