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.
- Despite a year-end correction, European software multiples outperformed their US peers, growing at an impressive 47% YoY for Europe and 26.2% for UK Small & Mid.
- After a volatile Q4, the last quarter ended in only a small overall movement in revenue multiples across all categories, with the exception of UK Small & Mid which decreased 7.9% QoQ.
- There is no distinctive trend on EBITDA margins in Q4 – a small increase for both Europe and US Horizontal, and decreases for UK Small & Mid, US SaaS and US Vertical.
- The Enterprise Values Index increased modestly across 3 out of the 5 subsectors, led by Cybersecurity, and then HR tech and Industrial. Fintech charted the strongest decline this quarter, ending the year with a small plus of 3%. Every index declined in December.