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Oct 20, 2022

Q3 2022 | Software Benchmark report: Declining valuations, have we hit the bottom?

Welcome to the latest edition of the Silverpeak Benchmark report: A review of public Application Software company valuation metrics in Europe, UK and the US, broken down by SaaS, Vertical and Horizontal. By reviewing median values, our aim is to provide a robust industry reference benchmark.

Report highlights

  • Q3 has seen inflation reach record highs, driven by various macroeconomic trends, including continued geopolitical instability, rising energy prices, and supply chain disruptions.
  • EV/revenue multiples are beginning to stabilise across the board. We can see the rate of decline this quarter (-9%) is much lower than in Q1 (-23%) and Q2 (-21%) of this year.
  • In 2022, the IPO market for software companies was particularly barren, only witnessing 9 IPOs, which, compared to a record 107 IPOs in 2021, is extremely low.
  • There are even more positive signs in the US where SaaS is starting to see a return to growth

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