Public SaaS Companies Nearing GAAP Profitability

Median EBITDA margin for the SEG Public SaaS Index was -4.1% during the final quarter of 2016 and has been trending toward positive territory for the past couple of years. This compares to -9.4% and -13.7% in 4Q15 and 4Q14, respectively. While 60% of the index posted GAAP losses during 4Q16, approximately 70% of the index posted positive cash flow from operations (CFO) in Q4. For additional insight, please see SEG’s 4Q16 Software Industry Financial Report.