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Jul 13, 2023

Q2 2023 | Software Benchmark report: Europe joins US in software recovery

Welcome to the latest edition of the Silverpeak Benchmark report, an analysis of public application software company valuation metrics in Europe, the UK and the US, broken down by SaaS, vertical and horizontal. We review median values to produce a robust industry reference benchmark.

Report highlights

  • Inflation, interest rate rises and fears of a recession all continue to dampen software valuations as investors seek higher risk premia
  • Yet Europe now appears to be following the US out of the doldrums, with EV/Revenue and EV/EBITDA multiples up strongly in the region through Q2, rising by 13% and 23% respectively. US multiples remained steady, following increases during Q1.
  • Revenue growth forecasts were down as economic reality was recognised by companies and forecasters, while EBITDA margins remained resilient. Companies and investors in today‚Äôs liquidity-constrained environment are focusing on profits over growth.

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