PUBLIC MARKETSEG Snapshot: 3Q22 SaaS Public Market UpdateDespite the broader market decline, the financial health of businesses in the SEG SaaS Index continues to remain strong in several areas.
Download the SEG Snapshot: 3Q22 SaaS Public Market Update
The median EV/Revenue multiple for 3Q22 was 6.3x, down 61% year-over-year. However, there may be a silver lining: while the public markets continue to experience volatility, valuations for public SaaS companies have effectively been flat month-over-month since May (hovering around 6.0x EV/Revenue).
Despite the broader market decline, the financial health of businesses in the SEG SaaS Index continues to remain strong in several areas:
- Companies continue to grow larger in scale. Total median revenue reached an impressive $602 million in Q3.
- Median revenue growth has maintained a steady pace in the mid-20% range. In 3Q22, the Index boasted a healthy TTM revenue growth rate of 26.4%, up from 24.9% in 3Q21.
- The Index’s 71.3% median gross profit margin remains strong and is generally consistent with prior quarters.
Download our full 3Q22 report to explore the latest trends and learn more.