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PUBLIC MARKETSEG SaaS Index Update: February 2022

Alongside other major indices, the SEG SaaS Index was down in February, dipping to -18.3% YTD amidst rising geopolitical unrest and market uncertainty around rising interest rates and inflation.

Download the SEG SaaS Index Update: February 2022

A quick update on public SaaS company stock performance over February:

Alongside other major indices, the SEG SaaS Index was down in February, dipping to -18.3% YTD amidst rising geopolitical unrest and market uncertainty around rising interest rates and inflation. Despite the overall dip, increasing cybersecurity concerns caused security tech stocks to rise in February, led by companies such as Palo Alto Networks, Tenable, and Crowdstrike.

Highlights:

  • The median EV/Revenue multiple for public SaaS companies softened in February to 10.2x, down marginally from February’s 10.4x multiple due to rising geopolitical unrest and uncertainty around rising interest rates and inflation.
  • Small SaaS companies ($0-$250M in TTM Revenue) feel the most pressure compared to other cohorts, posting a YTD decline of -26.8%.
  • Security software was the only product category to improve in YTD price return since the end of January due to increasing demand for cybersecurity.
  • Due to a perceived decrease in demand for video-based communications as companies return to the office, Communications and Collaboration dipped -12.8% at the end of January and -27.2% YTD through February.