SEG-SaaS-Index-Update-August-2022

PUBLIC MARKETSEG SaaS Index Update: August 2022

While 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.

Highlights:

  • 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.