Multiples for SaaS companies growing above the median of 21% are stronger: 7.57x on median and 8.52x on average. Only 23% of companies are trading at 10x revenue or greater, whereas the peak was 60% in Q4 2020. One company trades above 20x whereas 35 traded above 20x in Q4 2020. The data is below.
The stats. The median SaaS business had trailing twelve month revenue of $637mm, EBITDA of -$34mm, but positive operating cash flow of $66mm thanks to up-front collections on annual contracts. YOY growth is 19% on median and average. The median EBITDA margin is -5%. Debt is negligible. While 65 of the companies have negative EBITDA, only 29 have negative cash flow.
Enjoyed this post?
Share it using the links below.