Silverpeak Q2 2022 benchmark report: Application Software multiples continue decline in Q2

Welcome to the latest edition of the Silverpeak Benchmark report – Application Software Sector, a review of key company valuation metrics in the US, UK and European application software sectors. By reviewing sector median averages, our aim is to provide a set of software industry benchmarks against which individual company performance can be measured.

Report highlights

  • Software valuations continued their slide in the second quarter amid concerns over recessionary indicators; accentuated by the large proportion of Growth Companies, who tend to suffer more from market volatility.
  • EV/revenue multiples have continued to decline across the board, averaging -21%.
    US (average -27%) and Europe (-19%) categories have been the most affected by the current economic situation. While the UK only decreased -5%, it continues to have the lowest median multiple.
  • In something of a bright spot, EV/EBITDA multiples in the UK remain higher (+20%) than the 12 month period pre-COVID pandemic and in Europe the multiples are only 3% lower then pre-pandemic.
  • Investors placed more importance on profitability than forecast revenue growth in Q2 2022 as EV/revenue multiples across categories and sectors saw a heavier correction than EV/EBITDA multiples.


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Silverpeak co-hosts Leadership dinner for data-rich businesses

On the evening of 5th July, Spectrum, the technology sector executive search firm, Silverpeak, the mid-market tech-focused corporate finance advisor and Squire Patton Boggs the global law firm, co-hosted a Data Leadership Dinner.

We brought together 15 senior executives for a ‘Chatham House rule’ discussion on data businesses during a private dinner in Central London.

The key points of debate and discussion were:

  • What makes a business a data business?
  • The origins of businesses that are now data businesses – what problem is being solved
  • What is the value of data?
  • The role of AI
  • The necessity for data to deliver actionable insights
  • The 3 layers of data
  • The role of the edge to cut out noise
  • The residual value of data
  • How data businesses are valued, and the challenges associated with valuing data businesses – including data ownership