PUBLIC MARKETSEG Snapshot: 3Q21 SaaS Public Market Update

The SEG SaaS Index continues to maintain record-level valuations.

Download the SEG Snapshot: 3Q21 SaaS Public Market Update

SEG’s 3Q21 SaaS Public Market Update is a snapshot of how public companies are performing in our SEG SaaS Index. The Index is comprised of 99 publicly traded companies that primarily offer solutions via the cloud and may have a subscription or transaction-based pricing model.


  • The SEG SaaS Index continues to maintain record-level valuations despite a mild softening since 1Q21’s peak. 3Q21’s median EV/Revenue multiple of 13.2x is nearly 50% above the trailing 5-year average of 8.8x.
  • A plethora of companies have gone public in recent quarters, and a number of exciting companies, including Toast, PowerSchool, Paycor,, and Coursera, will soon be added to the Index.
  • Revenue growth continues to remain highly correlated to valuation multiples for public SaaS companies. Those generating revenue growth of 40% growth or more posted a median 31.4x EV/Revenue during 3Q21. ​
  • Snowflake (94.0 EV/Revenue), (81.7x EV/Revenue), and Cloudflare (70.6x EV/Revenue) led the way as the highest-flying SaaS companies of 3Q21. ​
  • While the median EBITDA margin has hovered around GAAP breakeven over the past few quarters, free cash flow from operations has been strong, reaching 10.7% in 3Q21.
  • Median EV/Revenue multiples for the Development Operations & IT Management (22.3x) and Communications and Collaboration (17.8x) product categories continue to lead the way.