od level of New Rev/S&M is, we looked at the sales & marketing efficiency of the last 68 SaaS IPO’s going back to MongoDB’s IPO in October 2017. This data comes from their S1 filing which is a prospectus issued before going public.
The average is higher. Note that while the median may be $0.66, the average is $0.95. The average SaaS company generated $295mm of revenue at IPO while on median, revenue was $177mm. The higher sales efficiency at the average may indicate larger companies do have some economies of scale over smaller ones.
The last 20 have been exceptionally productive. The last 20 IPO’s averaged $1.05 cents. MeridianLink and Infusion were exceptionally productive at $4.98 and $2.07 respectively.
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