- 16 April 2019
US SaaS multiples skyrocket while growth forecasts fall
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.
- US SaaS median revenue multiple rocketed by 49.5% QOQ to 8.2x, reaching the previous peak. In the meantime, its revenue growth expectation declined by 6.5% QOQ to 18.9%
- US Horizontal and US Vertical revenue multiples followed the trend of US SaaS TEV/Sales and increased by 23.9% and 18.1% QOQ respectively
- UK Small & Mid diverged further from US multiples, having closed the gap in 2018.
- European companies, who continue to have the lowest valuations, were the only category that experienced a drop in TEV/Sales QOQ, from
2.0x (Q4’18) to 1.9x (Q1’19)