PUBLIC MARKETSEG SaaS Index Update: August 2022While still down YTD, stock price performance for the SEG SaaS Index had a minor month-over-month improvement while other major indices worsened.
Download the SEG SaaS Index Update: August 2022
Public SaaS company valuations continue to hover above July lows, reaching 6.7x EV/Revenue in August compared to July’s 6.0x multiple. This volatility will continue as the tug of war between fighting inflation and avoiding a recession plays out.
- Human capital management continues to lead all other product categories, as the cohort gained 4.4% from July to August after being down 21% YTD in July.
- Communications and Collaboration posted the lowest YTD price performance, with equities in the category declining 56.7% thus far in 2022. The product category has continued to come back to earth after it experienced exorbitant highs due to the rapid acceleration of remote work experienced during COVID.
- Qualys (10.7%), PowerSchool (9.3%), and Alteryx (3%) are three of five companies posting positive YTD returns.
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SEG Snapshot: 2Q22 SaaS Public Market Update
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Publicly-traded SaaS companies posted a median 7.1x EV/Revenue multiple, down 53% YOY from 2Q21’s 15.2x peak level of irrational exuberance in public equities. Yet, compared to the pre-pandemic average, public SaaS valuations are down a more modest 16%.Access report