PUBLIC MARKET1Q23 SaaS Public Market Update

Investors flock to businesses displaying capital-efficient growth.

Download the 1Q23 SaaS Public Market Update

Public SaaS company valuations have stabilized in recent quarters, growing 11% over the prior quarter to 6.0x EV/Revenue in 1Q23. What’s more, investors flocked to more durable SaaS businesses with capital-efficient growth instead of the prior “growth at all costs” mentality. 

Our latest report highlights the following insights into the SaaS public market:

  • Investors emphasized revenue growth efficiency in 1Q23, as companies surpassing 60% on a Weighted R40 posted a median multiple 88% higher than the broader Index median.
  • The median share price of the SEG SaaS Index experienced strong growth through the end of 1Q23, up 10.5% YTD by the end of March.
  • Product categories posting EV/Revenue multiples at or above the Index median include Human Capital Management (9.1x), ERP & Supply Chain (8.0x), Security (7.0x), DevOps & IT Mgmt. (6.6x), and Vertically Focused (6.0x).

Download our full 1Q23 report to explore the latest trends and learn more.