SEG’s 2Q20 SaaS Public Market Update is a snapshot of how public companies are performing in our SEG SaaS Index. The Index consists of 91 publicly traded companies. These companies primarily offer solutions via the cloud and / or through a subscription or transaction-based model.
View the full report on our research page: SEG 2Q20 SaaS Public Market Update. We’ve highlighted some key points from the report below:
On a quarterly basis, the median revenue multiple was in line with prior quarters, posting 8.8x EV/Revenue in 2Q20. The solid multiple points to the health and resiliency of public SaaS companies during the COVID pandemic and associated macro uncertainty. See slide 17 for more.
Evaluating the median EV/Revenue multiple on a monthly basis further demonstrates the impressive rebound by public SaaS companies. The SEG SaaS Index surpassed pre-COVID levels and posted a striking 10.4x EV/Revenue multiple in June. See slide 18 for more.
The size of public SaaS companies continues to grow, as the SEG SaaS Index posted a median TTM revenue of $545.8M. Revenue growth slowed YOY, posting a median 25.4% compared to 2Q19’s 27.4% revenue growth. See slide 14 for more.
In this period of market uncertainty, there was a flight to safer, higher quality assets. This is evidenced in the higher YOY EV/Revenue multiples for companies greater than 20% on a Rule of 40% basis, and profitable businesses with EBITDA margins over 20%. See slide 21 for more.
Communications and Collaborations companies continue to reap the benefits of social distancing measures. The group posted a median 18.9x EV/Revenue and includes SaaS high-fliers Zoom (55.3x), RingCentral (23.8x), Slack (23.7x), and Docusign (21.1x). See slide 22 for more.
Read SEG’s 2Q20 SaaS Public Market Update for more coverage on the 90+ companies in the SEG SaaS Index.