US revenue multiples at record highs

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

  • In contrast UK Small & Mid revenue multiples, which are now below Europe, are still down 40% Y.o.Y. while its median forecast annual revenue growth saw a significant decrease of two thirds to 1.7%.
  • European revenue and EBITDA multiples look to have both recovered strongly in Q3. There was an uplift of 31% in the median EBITDA multiple in Europe to 20x, exceeding the 24-month average. Europe also showed the largest relative increase in median forecast revenue growth increasing to 7.5%.
  • EBITDA multiples have increased to levels above the 24-month average for US Horizontal, Europe and UK Small & Mid. US SaaS and US Vertical EBITDA multiples are well below their peak, but were constant Q.o.Q, The median EBITDA margin has not changed significantly in Q3 for any category.
  • HR Tech continues to outperform other sub-sectors in our Enterprise Value growth index. Other subsectors remained stable across the quarter, but median values showed signs of a downward trend in September.

Silverpeak Benchmark Report Q3 2020

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

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

READ MORE

UK and Europe achieve record revenue multiples

READ MORE