Fresh Insights

Analyses, Musings & Observations

Tech CEO Salaries at IPO

We’ve seen a wide range of CEO salaries in our portfolio, from as low as $35k annually to as much as $350k. While there is no dataset explicitly outlining salary levels at early stage SaaS companies, we have salary data from tech companies at IPO. This can give a sense for what the salary should…
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Automating your SaaS price increases

Maintaining net dollar retention over 100% is critical to the health of your SaaS business and getting a premium valuation. One easy hack to improve NDR is to include automatic price escalators in your annual contracts with customers. Our portfolio companies do this, and the automatic price increase upon renewal is anywhere from 5% to…
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Q2 consumer tech multiples

Below are revenue multiples for publicly traded consumer tech companies (B2C). Industries and therefore multiples vary widely. Social media trades at 5.9x. Multiples rose steadily through 2020 peaking at 22.7x on median in Q1 2021. YOY growth in the space is 4% on median, with Doximity leading the way. Travel marketplaces down to 1.7x. Multiples…
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Q2 SaaS multiples stabilized at ~6x

SaaS multiples have continued to show stability. Of the 116 SaaS companies we follow, the median public SaaS business is trading at 5.85x revenue while the average is 7.11x. The gap between the average and median is only 1.3x, meaning premium SaaS companies are getting slightly higher valuations, but that gap is tight relative to…
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SaaS growth data shows slowing

So how much has SaaS growth slowed? We looked at the YOY data of every SaaS company that has IPO’d since October 2017 (63 companies). The data is below and shows a material slowdown. YOY growth in Q1 2022 was 36% and as of Q1 2023 it sits at 21%. Revenue is still growing, but…
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Net dollar retention trends - 5 quarters

How is net dollar retention trending in SaaS? We looked at the net dollar retention of every SaaS company that has IPO’d since October 2017 (64 companies). The data is below.     Falling NDR. The current median of 115% is very strong, but that figure fell from H1 2022 when NDR was over 120%….
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Quarterly SaaS losses aren’t improving

Are SaaS companies burning less cash? We looked at the operating income and margin of every SaaS company that has IPO’d since October 2017 (64 companies). The data is below and shows that operating margin has improved over the past 5 quarters, but operating loss has not. Below is the detail.     Margin has…
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Quarterly SaaS Cash Efficiency Data

Are SaaS companies spending less to add new revenue? We looked at the ‘cash efficiency’ of every SaaS company that has IPO’d since October 2017 (64 companies). The definition is new revenue/operating loss, so the higher the figure, the more revenue is being added for each dollar of loss. Formulaically, in Q4 it would be…
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Are SaaS companies burning less? Not really

Are publicly traded SaaS companies burning less? Surprisingly the answer is no. However are they operating more profitability? Most definitely. Below we show every publicly traded SaaS company (there are 63 as of Q1 2023) as well as a snapshot of their revenue, operating income, and margin.       In yellow, you can see…
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Q1 SaaS metrics & data

We keep close track of every SaaS IPO in the past five years (since MongoDB in October 2017). Those 63 companies have all now issued their Q1 2023 earnings reports. Below we summarize key financials and metrics.       Median quarterly revenue of $136mm. Median and average revenue was $136mm and $209mm respectively. Annualized,…
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