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PUBLIC MARKETSEG Snapshot: 3Q20 SaaS Public Market Update

SEG’s 3Q20 SaaS Public Market Update is a snapshot of how public companies are performing in our SEG SaaS Index. The Index is comprised of 93 publicly traded companies that primarily offer solutions via the cloud and/or through a subscription or transaction-based model.

Download the SEG Snapshot: 3Q20 SaaS Public Market Update

Public SaaS companies lead major indices in terms of YTD stock price performance, reaching 25.9% by the end of 3Q20.

The SEG SaaS Index led an impressive rebound in valuation, surpassing previous records and sustaining a new high in 3Q20. The quarter’s median 11.2x EV/Revenue multiple was 31.7% above the 3-year Index median of 8.5x, and 13% greater than 3Q19’s previous record of 9.9x.

Investors continue to favor high quality SaaS companies in times of uncertainty, as companies with high gross profit margins and revenue growth posted the highest valuations.

Development Operations & IT Management (20.7x) and Communications & Collaboration (19.9x) posted the highest valuation multiples out of other cohorts due to increased demand from COVID-19 work from home mandates.