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PUBLIC MARKETSEG Snapshot: 3Q22 SaaS Public Market Update

Despite 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.