Public SaaS Companies

The public market section provides a comprehensive analysis of stock prices, financial data, and valuation performance for over 120 publicly traded B2B software companies constituting our SEG SaaS Index™. Notably, the percentage of Index companies trading at >12.5x EV/TTM revenue multiples surged from 5% in 1Q23 to 16% in 1Q24, signaling a resurgence among top performers. Additionally, the Index’s swift transition toward capital efficiency underscores the SaaS industry’s enduring earning potential.

Notable Public SaaS Companies

SEG SaaS Index EV/Revenue by Product Category

Multiple categories in the Index exhibited higher median EV/TTM revenue multiples in 1Q24 compared to 1Q23, reflecting the overall strong performance of many Index companies in 2023. Notably, DevOps & IT Management and Security experienced the most significant increases, with revenue multiples rising from 6.6x to 10.1x and from 7.5x to 10.3x, respectively.

EV/Revenue by Product Category
Quarterly Medians
1Q23
2Q23
3Q23
4Q23
1Q24
SEG SaaS Index
5.9x
5.9x
6.0x
5.8x
6.0x
Analytics & Data Management
5.4x
5.4x
5.9x
6.0x
5.9x
DevOps & IT Management
6.6x
8.1x
10.8x
9.0x
10.1x
ERP & Supply Chain
8.0x
8.6x
8.3x
7.7x
8.6x
Sales & Marketing
5.3x
5.1x
5.5x
5.0x
5.2x
Security
7.5x
7.3x
7.0x
7.6x
10.3x
1Q23
SEG SaaS Index
5.9x
Analytics & Data Management
5.4x
DevOps & IT Management
6.6x
ERP & Supply Chain
8.0x
Sales & Marketing
5.3x
Security
7.5x
2Q23
SEG SaaS Index
5.9x
Analytics & Data Management
5.4x
DevOps & IT Management
8.1x
ERP & Supply Chain
8.6x
Sales & Marketing
5.1x
Security
7.3x
3Q23
SEG SaaS Index
6.0x
Analytics & Data Management
5.9x
DevOps & IT Management
10.8x
ERP & Supply Chain
8.3x
Sales & Marketing
5.5x
Security
7.0x
4Q23
SEG SaaS Index
5.8x
Analytics & Data Management
6.0x
DevOps & IT Management
9.0x
ERP & Supply Chain
7.7x
Sales & Marketing
5.0x
Security
7.6x
1Q24
SEG SaaS Index
6.0x
Analytics & Data Management
5.9x
DevOps & IT Management
10.1x
ERP & Supply Chain
8.6x
Sales & Marketing
5.2x
Security
10.3x

SaaS M&A Activity

SaaS M&A remained robust annually, with 2023 being the second-highest year recorded. However, in the first quarter of 2024, there were 486 deals, showing a 5% increase from the previous quarter (464 deals in 4Q24) but a 14% decrease YOY (567 deals in 1Q23). The decline in the last two quarters is likely due to factors such as regional bank instability in early 2023, macroeconomic concerns, and a high-interest rate environment. Nonetheless, the 486 deals in 1Q24 still significantly surpass pre-2022 levels, marking a 50% increase from the average in Q1 from 2019 to 2021.

M&A Deal Volume

Quarterly

M&A Deal Volume

Monthly

Vertical M&A Activity

In 1Q24, vertically focused businesses accounted for nearly half of all transactions, consistent with 1Q23 figures. Healthcare and Financial Services were the most active verticals, comprising 16% and 15% of SaaS deals, respectively. Notably, Hospitality, Retail, and Manufacturing witnessed increased activity year-over-year, indicating a broadening focus among investors.

Healthcare M&A

Quarterly

Buyers of SaaS

Buyers and investors have continued their trend of prioritizing durable and sustainable M&A targets in response to current market conditions. Private equity investors remain dominant, representing 59% of SaaS M&A deals in 1Q24. Strategic buyers, comprising 40.7% of deals, saw their most active two-quarter period since 1Q22. While private equity remains influential in 2024, the resurgence of public equities suggests strategics will maintain increased activity throughout the year.

SaaS M&A Activity by Buyer Type

1Q24

Archived Reports

If you are looking for a past version of SEG’s Annual or Quarterly Reports, you can now download all previously published reports from our archived section.

DOWNLOAD YOUR REPORT

1Q24 SaaS M&A and Public Market Report

1Q24 SaaS Report

Gain strategic insights into the SaaS industry with our latest report. Click the button to download your copy.