PUBLIC MARKETSEG Snapshot: 2Q17 SaaS Public Market Update
Our 2Q17 SaaS Public Market Snapshot includes operational and financial performance metrics for all publicly traded SaaS companies. This includes median EBITDA margin, TTM revenue growth, operating ratios, the Rule of 40% analysis, and public market multiples by product category.Download the SEG Snapshot: 2Q17 SaaS Public Market Update
The 6.0x median EV/Revenue multiple posted by publicly traded SaaS companies in 2Q17 is a seven quarter high, buoyed by impressive median revenue growth and gross margin expansion (approaching 70%). The vast majority of public SaaS companies also generated positive free cash flows from operations during the quarter – a positive signal to the long term viability of the SaaS model. On the whole, public SaaS companies appear to be earning their valuation premium (compared to on-premise vendors) through continued financial and operating improvements. Download the report for more insights.