SEG Snapshot: 3Q17 SaaS Public Market Update

The 64 companies in our SEG SaaS Index demonstrated strong financial performance this quarter, posting a median EV/Revenue multiple of 6.6x, the highest valuation the Index has reached in the past 13 quarters.

3Q17 SaaS Public Market Snapshot Highlights:

  • Median EV/Revenue multiple for public SaaS companies was 6.6x, a high point since 2Q14. To see the EV/Revenue multiple distribution, check out page 9.
  • TTM Revenue Growth Rate was in line with last quarter, posting a median growth rate of 27.8%. To see valuations for specific revenue growth rate ranges, see page 10.
  • ERP & Supply Chain once again posted the highest EV/Revenue multiple out of all public SaaS product categories. To see how other product categories ranked, check out page 12. 
  • Median EBITDA margin has been steadily trending toward break even for the in past 11 quarters. For more on EBITDA margins, see page 7.

SEG Snapshots, a new initiative for 2017, provide timely information and insight on the financial health, market performance, and acquisition activity across the software industry. Visit our website’s research page regularly throughout the year as we assess software market trends across public markets, industry verticals and product categories.