SEG-Internet Index Services

SEG’s Monthly Flash Reports track the financial performance and valuations of approximately 300 software companies, categorized in nearly 30 product categories across the on-premise software, SaaS and Internet sectors.  This post highlights the performance of the SEG-Internet Index Services product category as shown in the SEG December Monthly Flash Report.  To view the performance of dozens of other product categories, download the latest complimentary Monthly Flash Report here: https://softwareequity.com/research_flash_reports.aspx

In the month of December, the Services category achieved a median EV/Revenue multiple of 3.5x, TTM Revenue Growth of 23.5%, and EBITDA Margin of 17.2%. Notable companies outperforming their respective category include:

  1. On an EV/Revenue multiple basis, LinkedIn and Qihoo outperformed the category with multiples of 13.9x and 12.6x, respectively.
  2. On a TTM Revenue Growth basis, LinkedIn and Qihoo outperformed the category with a revenue growth of 161.9% and 117.3%, respectively.
  3. On a TTM EBITDA Margin basis, Ancestry.com, FriendFinder,  and Archipelago Learning Inc. outperformed the category with a margin of 33.5%, 30.5%, and 29.6%, respectively.

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