Revenue growth forecast doubles from Q3 to Q4 for UK and European software

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.

Starting this quarter, we have included a snapshot on European software M&A.

Report highlights

  • US SaaS revenue multiples were predicted to continue their descent from Q3, however, they rebounded from a 7.7x trough to end the quarter at 8.2x. Contrastingly, EBITDA multiples have continued to fall, reaching a low of 35.6x in H2 2019 from their H1 peak of 44.0x.
  • US Horizontal revenue multiples have done a U-turn since last quarter’s 11% fall; increasing 22.3% to 6.9x.
  • UK Small & Mid EBITDA multiples have shot up 3.3x to 19.6x. They look on course to match their historical peak of 22.0x in H2 2018. Furthermore, their median forecast annual revenue growth has doubled since last quarter, showing positive signs for these companies, despite the recent political events surrounding Brexit.
  • European revenue multiples were the only ones to fall in Q4. However, they have had the strongest growth in EBITDA margin (+4.9%) out of all the categories.

Silverpeak Benchmark Report Q4_2019

The state of the market for series B&C rounds in European tech companies

READ MORE

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

READ MORE

Silverpeak Q1 2022 benchmark report: Multiples fall 16% across all categories

READ MORE

The State of the Market for Series B&C Rounds in European Tech Companies | 2021

READ MORE

Q4 underpins 2021 as the year of European software, outperforming all other categories

READ MORE

European and UK companies see strongest valuation growth YoY

READ MORE