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™.

The upper quartile reached a median EV/TTM Revenue multiple of 9.0x, a 58% premium to the total Index median (5.7x). The upper quartile displays balanced growth (24% revenue growth vs. 5% posted by the lower quartile) and strong cash flow (29% CFO margin vs. 8%), the most sought-after traits in the current landscape. See select top quartile companies by EV/TTM Revenue below:

Notable Public SaaS Companies

SEG SaaS Index EV/Revenue by Product Category

Most categories in the Index recorded similar median EV/TTM Revenue multiples in 2Q24 as they did in 2Q23. Notable revenue multiple increases were observed in DevOps & IT Management (9.0x in 2Q24 vs. 8.6x in 2Q23) and Security (8.7x vs. 7.3x). However, ERP & Supply Chain is the third highest-valued product category, with an 8.0x EV/TTM Revenue multiple in 2Q24, representing a 40% premium to the Index median. Overall, the total Index median was 5.7x, down 6.6% from 2Q23.

EV/Revenue by Product Category
Quarterly Medians
2Q23
3Q23
4Q23
1Q24
2Q24
SEG SaaS Index
6.1x
6.1x
6.0x
6.3x
5.7x
Analytics & Data Management
5.4x
5.9x
6.0x
5.9x
5.2x
DevOps & IT Management
8.6x
11.0x
9.0x
10.4x
9.0x
ERP & Supply Chain
8.6x
8.3x
7.7x
8.6x
8.0x
Sales & Marketing
5.3x
5.5x
5.0x
5.2x
4.6x
Vertically Focused
6.7x
6.3x
4.9x
5.3x
4.9x
2Q23
SEG SaaS Index
6.1x
Analytics & Data Management
5.4x
DevOps & IT Management
8.6x
ERP & Supply Chain
8.6x
Sales & Marketing
5.3x
Vertically Focused
6.7x
3Q23
SEG SaaS Index
6.1x
Analytics & Data Management
5.9x
DevOps & IT Management
11.0x
ERP & Supply Chain
8.3x
Sales & Marketing
5.5x
Vertically Focused
6.3x
4Q23
SEG SaaS Index
6.0x
Analytics & Data Management
6.0x
DevOps & IT Management
9.0x
ERP & Supply Chain
7.7x
Sales & Marketing
5.0x
Vertically Focused
4.9x
1Q24
SEG SaaS Index
6.3x
Analytics & Data Management
5.9x
DevOps & IT Management
10.4x
ERP & Supply Chain
8.6x
Sales & Marketing
5.2x
Vertically Focused
5.3x
2Q24
SEG SaaS Index
5.7x
Analytics & Data Management
5.2x
DevOps & IT Management
9.0x
ERP & Supply Chain
8.0x
Sales & Marketing
4.6x
Vertically Focused
4.9x

SaaS M&A Activity

Despite an 11% decline in SaaS M&A volume in the first half of 2024 compared to the first half of 2023, this year is set to exceed 1,900 transactions. This would mark the third highest year on record, an impressive feat given the macroeconomic challenges impacting M&A activity over the past two years.

SaaS M&A Deal Volume

Quarterly

M&A Deal Volume

Monthly

Vertical M&A Activity

Vertically focused businesses accounted for nearly 40% of all SaaS deals in 2Q24. The Healthcare sector led with 19% of vertical deals in 2Q24, up from 13% in 2Q23, showing a strong YOY increase. Other sectors with increased activity include Real Estate, rising to 9% in 2Q24 from 6% in 2Q23, and Manufacturing, which grew to 6% from 2%.

Healthcare M&A

Quarterly

Buyers of SaaS

Private equity investors remain highly active in M&A, involved in 58.2% of SaaS transactions through both platform acquisitions (9.7% of 2Q24 deals) and their portfolio companies as PE-backed strategics (48.5% of 2Q24 deals). With stocks rebounding and a more stable economic environment, public strategics have become more acquisitive, showing a slight increase to 23.1% in 2Q24 from 21.9% in 2Q23.

SaaS M&A Activity by Buyer Type

1Q24

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2Q24 SaaS M&A and Public Market Report

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