Fresh Insights

Analyses, Musings & Observations

Learnings from a SaaS IPO – Backblaze

BackBlaze is a software company that went public in 2021. Below are some of the highlights and learnings from their prospectus. What they do. “We are a leading storage cloud platform, providing businesses and consumers cloud services to store, use, and protect their data in an easy and affordable manner. By substantially reducing the complexity…
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Learnings from a tech IPO – NerdWallet

NerdWallet is a tech company that went public in 2021. Below are some of the highlights and learnings from their prospectus. What they do. “At NerdWallet, we empower consumers — both individual consumers and small and mid-sized businesses (SMBs) — to make smarter financial decisions with confidence. We deliver guidance to consumers through educational content, tools and calculators, product…
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Learnings from a SaaS IPO (Informatica)

Informatica is a software company that went public in 2021. Below are some of the highlights and learnings from their prospectus. What they do. “We have pioneered a new category of software, the Intelligent Data Management Cloud, or IDMC. IDMC is our AI-powered platform that connects, manages, and unifies data across any multi-cloud, hybrid system,…
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SaaS acquisition multiples

Every quarter we publish public SaaS multiples (that data is further down this blog). Alongside multiples of publicly traded SaaS companies, public SaaS acquisitions are some of the most relevant you can look at for deriving SaaS revenue multiples. These transactions are all cash, the financials are public and audited, and these are all control…
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Q1 tech multiples down

Below are revenue multiples for publicly traded consumer tech companies (B2C). Industries and therefore multiples vary widely. Commentary is below. If you’re looking for data on SaaS multiples, keep scrolling. Social media is at an all time low. Multiples rose steadily through 2020 peaking at 22.7x on median in Q1 2021. Now we’re at 7.7x….
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SaaS IPOs are dead

One statistic we like tracking to gauge the health of SaaS investing is the rate of IPOs. Below is the data and a few observations. It’s not looking good. The last SaaS IPO was Sansara in on December 15, 2021 whereas prior to that, there were as many as 7 SaaS IPO’s a month (June…
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SaaS valuations down 24%

SaaS comps continue to be historically strong, but fell 24% from last quarter. Of the 123 SaaS companies we follow, the average public SaaS business is trading at 12.9x revenue while the median is 9.3x. The gap between the average and median is 3.6x, meaning premium SaaS companies are getting outlier valuations, but that gap…
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Learnings from a SaaS IPO – Enfusion

Enfusion is a smaller software company that went public in 2021. Below are some of the highlights from their prospectus. The key learnings we took away: you can be small and go public (the last business to go public with revenue this low was Livongo, a few years ago), and dont structure contracts the way…
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Learnings from a SaaS IPO – Gitlab

Gitlab is a software company that went public in 2021. Below are some of the highlights from their prospectus. The key learnings we took away: you might have to sunset smaller/early customers, intentional transparency can be an asset (stop being so secretive), freemium is their way with land-and-expand to follow, smaller/lower risk releases are good,…
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Learnings from a SaaS IPO (Amplitude)

Amplitude is a software company that went public in 2021. Below are some of the highlights from their prospectus. The key learnings we took away: charge for the value you’re providing, not just by user; upsell by expanding use cases for the client; drive unlimited usage at the customer to make yourself sticky; and international…
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