2023年第二季度SaaS报告（英）

QuarterlySaaS

Report2Q232Q23

SaaSSummary●

Outlook

across

thebroader

markets

hasimproved

ascore

inflation

demonstrated

anotablecooling

toward

theendof2Q23,generatingoptimismfor

thepotential

easingof

interestrate

hikes.Interest

rate

hikes

paused

in

June,

butFederal

Reserveofficials

haveindicatedadditional

hikesare

likelyrequired

thisyeartotame

inflation.●

TheConsumer

Price

Index(CPI)

increased

by3%YOY.Thischange

marksthelowest

increaseintwoyearsand

furtherimproves

marketsentiment

forinvestorsandconsumers.●

Improving

market

sentiment

coupled

with

industry

excitement

aroundAIhave

contributed

toastrong

first

half

forB2B

SaaS

stockperformance.

TheYTD

median

sharepriceperformance

of

theSEGSaaS

Indexposted

growth

of

19.1%.

Themedian

EV/TTM

Revenuemultipleof

theSEGSaaS

Indexcontinued

itsrebound

from

4Q22

lowsand

arrivedat

6.0x,

aslightimprovement

overlastquarter’s5.8x.●

Theaverage

EV/TTMRevenue

multiple

for

SaaS

M&Awas

5.6x,falling

slightly

below

1Q23’s5.9xaverage.

High-qualitybusinessescontinuetogarner

significantinterestand

command

above-average,

premiummultiplesin

today’smarket.

However,

SaaS

businessesburningcashandstrugglingtodemonstrate

revenuedurability(i.e.,

poor

customer

retention),

that

are

undergoing

transactions

duetoaneed

for

liquidity

are

seeingmultiplecompression,

resultingin

a4.7x

EV/TTM

Revenuemedian.Please

reach

outwithanyquestionsorto

discussourrelevantmarketinsights.2SEG’s

Continued

MomentumIn2023(Select

2023

TransactionsBelow)K-12

Edu

AdministrationEuna

Solutions

(formerlyGTYTechnology)

focusesonanew

businesscategory.Maritime

Health

&SafetyIdeagen

expands

complianceofferings

intothe

maritimeindustry.ManufacturingAnalyticsPrometheusAPMextendsbeyond

predictiveanalyticsintoprescriptivemaintenance.Construction

ProjectMgmtHexagon

strengthensPost-Acute

CareAnalyticsHome

CarePulsebolstersemployeeand

customerconstruction

software

offeringforassetowners.engagement

and

satisfaction.SEG'sguidance

and

expertise

have

been

indispensable

at

everycrucial

step

of

our

journey.

Before

becoming

aclient,

SEGguided

usthroughmultiple

critical

stages

of

ourbusiness,

frombeing

created

asasubsidiary

of

alarge

public

company

tothemanagementteam

acquiring

thebusiness.

When

it

cametimetoexplore

an

exit,

SEGwasright

there

too.

Their

unwaveringsupport

andadvice

throughtheyears

enabledustobest

prepare

forour

exit.Their

expertise

inourindustry

andbusiness

droveathoroughM&A

process,

creating

atremendoussuccess

story.SEGwasatrusted

advisor

every

step

of

theway,

and

wearegrateful

for

their

invaluable

partnership.”PaulMcRoberts,President

&CEO,AtonixDigital3TheHonesty

YouExpect.

TheValue

YouDeserve.Our

teamof

experienced

M&Aadvisors

understand

value

drivers.30+SEGprovidesinsight

on

howtomake

your

company

more

attractiveto

buyers

long

beforeyou’re

ready

tosell.

Then

we’ll

bringthe

bestparties

tothetable,handle

negotiations,andmanage

due

diligencesoyou

achievethebest

possibleoutcome.YEARS

EXPERIENCEWestrive

tocreatethecompetitionnecessary

toobtaina

higher

priceand

betterdealterms.Our

Services

Include:Billions●

StrategicM&A●

Majority

Capitalizations●

DivestituresINAGGREGATETRANSACTION

VALUEOur

teamadvisesbootstrapped

&financiallybacked

softwareentrepreneurswho

want

tosellall,

ora

majority

interest,toa

strategicbuyer

orprivateequityinvestor.Ourhigh-touch

process

supportsyou

ateverystage

intheM&Aprocess.●

BoardAdvisoryThousandsContactusOFBUYER

RELATIONSHIPS2Q23SaaS

M&AUpdate52Q23

SaaSM&A

Summary●

Aggregate

Software

IndustryM&Adeal

volume

hasseen

strong

momentuminrecent

quarters,

reaching

897total

dealsin2Q23andup5%from

855dealsin1Q23.●

Deal

activity

for

SaaS

M&Aremains

high

relative

tohistorical

periods

(538in

2Q23).

Althoughdeal

volumein2Q23experienced

a5%decrease

overthepriorquarter,

SaaS

M&Ais

onpace

for

thesecond-highest

annualtotal

inthelasttenyears

(onlyeclipsed

by

thebubbleyearof

2022).

Themonth

of

Maysaw192

M&Adeals,thesecond-highest

monthlydeal

volumefor

SaaS

in

ten

months.●

Theaverage

EV/TTMRevenue

multiple

for

2Q23was

5.6x.However,

specificcohorts

within

SaaS

are

continuingtosellforpremiummultiples.

Strong

outcomes

are

beinghadfor

companies

fittingtheprofilefromaSaaS

KPI(capital

efficient

growth,

strong

retention,

etc.)andproduct

differentiation

standpoint.●

Vertical

SaaS

comprised

46%of

all

M&Adeals

in2Q23.

Financial

Services

jumped

up

to

thepoleposition

oftheverticals,

representing18.9%

of

allSaaS

deals.●

Private

equity

appetite

forSaaS

M&Aremains

highas

itrepresented

themajority

(61.3%)

of

deals

in

2Q23.

PE-backed

strategicsrepresented

52.4%

of

deals,andPEplatform

investmentswere8.9%.Please

reach

outwithanyquestionsorto

discussourrelevantmarketinsights.6OverallSoftwareIndustryM&A:

DealVolumeAggregate

software

industry

(SaaS,

on-premise

licensemodels,

andinternet

companies)

M&Avolumecontinued

tobounce

back

from4Q22’srecenttwo-and-a-half-year

low,

reaching

897deals

in

2Q23.Thisfigurerepresents

a12%YOYdecrease

from

theextremely

activemarket

experienced

at

theendof

2021andearly

2022.

Despitethisdecrease,

software

deal

activityforthefirst

halfof2023

exceeded

allprioryears

except

2022,

whichwas

arecord-breaking

year.Anestimate

forannualsoftware

M&Ain

2023

expects

theyearto

finish

just

ahead

of2021’stotal,

onpace

tobeafantasticyearfromahistorical

software

volumeperspective.M&A

DealVolume

-

QuarterlyM&A

DealVolume

-

Annual11203,557

SEGEstimate(1)3,47610149669258973,0548848458552,7958057997802,6427467267342,4756866712,3522,2435991,9701,727

1,7242012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023(1)

SEG

Estimate

of

annual

deal

volumefor

2023.7SaaSM&A

Highlights:DealVolumeBuyerandinvestorappetite

for

SaaS

M&Aremains

high,

as

quarterlydeal

volumetotaled

animpressive538

transactions

in2Q23.

Outsideof

2022,

thisquarter’stransaction

volumegreatly

surpasseshistorical

second

quarters

andrepresents

a36%increase

over2Q21

indealcount.

AnnualSaaS

M&Avolumeis

projected

tohave

another

impressive

year

in2023,

fallingjust

shortof2022’s

total

butsignificantlyhigherthan2021

andprioryears.B2BSaaS

companies

continuetobehighlysought-after

acquisitiontargets

aslong-term

factors,

suchastheneed

for

competitive

differentiation

via

M&Aandcontinued

adoption

of

modern

technology

tooptimizebusiness

processes,

havecatalyzed

deal

flow.Thisquarter’s

impressivedeal

volumeperformancefurtherillustratesthestayingpower

ofSaaS

amidstshifting

macroeconomic

dynamics.SEGEstimate(1)Q1

Q2

Q3

Q42,1571,7864694925801,3051,248984831743538604457389299616567201220132014201520162017201820192020202120222023(1)

SEG

Estimate

of

annual

deal

volumefor

2023.8SaaSM&AHighlightsTargetMarket

Focus2Q23

TargetMarketFocus(1)Vertically

focused

businessescomprised

46%

of

allSaaS

deals

in2Q23,down

slightly

fromlastquarter’s

record

49%.Businessesservingtargeted,

vertical

end-markets

are

acoveted

assetsub-classwithin

SaaS

duetothetailored

expertiseand

workflows

builtintotheapplications

tosolveindustry-specific

challenges.

Businessdigitizationis

becoming

more

ofa‘need-to-have’

thana‘nice-to-have’inmanyindustriestokeep

upwithcompetition,

acquiremarket

share,andoperate

efficiently.Vertically

focused

SaaSofferings

can

provideadvantages

todefinedmarkets

that

horizontalsolutionsmightlack.Vertical46%Horizontal54%Top5M&A

Verticals(2)Financial

Services

led

allproduct

categories

thisquarter,representing

18.9%

ofSaaS

deals.M&Ain

thiscategory

is

drivenbytheexpandingneed

for

software-enabled

dataandanalyticsfunctionalitytocomply

withregulations

andimprove

risk

mitigation.18.9%13.3%Onthehorizontal

side,product

categories

withthehighest

volumeincludeHuman

Capital

Management

(17%ofhorizontalSaaS),Sales

&

Marketing(16%),

andSecurity(12%).6.0%5.6%5.6%(1)

Target

market

focusrefers

tothe

company’s

market

focusas

eitherhorizontalandservingmultipleindustries

or

servingaspecific

verticalmarket.EducationAutomotiveRetailHealthcareFinancialServices(2)

Top

verticaldeals

asapercent

of

all

verticalSaaSdeals

in

2Q23.9SaaSM&AHighlightsAverage

EV/TTM

RevenueMultiple

–QuarterlyEV/TTMRevenue

Multiples(1)7.6x7.1x6.8xWhileSaaS

deal

volumehasshownstrength

through

thefirst

halfof2023,

theaverage

EV/TTM

Revenue

multipleforSaaS

M&A

in2Q23decreased

slightly

to5.6x.

Asnoted

in

thepublicmarket

section

ofthisreport,

multiplesforpubliclytraded

SaaS

businesses

arerecovering

nicelyfrom

recent

market

turbulence,butwehistoricallyhaveseentheprivateM&Amarkets

lagthepublicmarkets

byamatter

of

months.Additionally,

thedatasupplied

hereis

onaTTMbasis,

likelynot

significantlyimpacted

byquarterlychanges

asquicklyasthepublicmarket.5.9x5.6x2Q223Q224Q221Q232Q23Despite2Q23’smedian

multiple,SEGcontinues

toseeexceptionaloutcomes

beingcommanded

primarilyfrom

businessesexhibitingtop-tierKPIs

(strongruleof40weighted

evenlybetween

growthandprofitability,stronggrossretention,

etc.).

Premium

multiplesare

alsoconsistentlyrewarded

tobusinessesservingdurablecustomer

bases

with

strongproduct

differentiation

and

acompetitive

moat.Median

EV/TTMRevenue

Multiple

–

Quarterly6.3x5.2x5.3x4.9x4.7xThedeltabetween

theaverage

andmedian

multiplefor

thisquarteris

likelyattributed

tothevaluationcompression

in

theM&Amarketfor

underperforming

companies

orthoseundergoing

atransactionoutofnecessity.2Q223Q224Q221Q232Q23(1)

Values

areonamedian

oraverageTTMbasis,

indicatingeachquarter

includes12months

ofdata

to

obtaina

largerdataset.10SaaSM&A

Highlights:BuyerBackingPrivateequity(1)

investorscontinued

todrivethemajority

of

SaaS

M&A,comprising61.3%

of

dealsin2Q23.

Thisis

broken

down

furtherintoPE-backedstrategics

(52.4%)andplatforminvestments(8.9%).

For

context

intoPE’sincreasingfootprint

in

SaaS

M&A,

2Q18hadPEbuyersrepresent

amere

47%of

SaaS

M&Adeals.Thegrowth

of

PE’srelativetakeofSaaS

M&A

deals

is

particularly

impressiveconsideringthesheermagnitude

of

transactionstakingplace

today

compared

tohistorical

periods.SaaS

remains

highlysoughtafter

byPEinvestorsfor

theinnateabilityto

scalerevenues

in

acapital-efficient

manner

whilerelyingonpredictable

recurring

revenuemodels

togenerate

durablefinancialperformance.

Thecombination

ofrecord

amounts

ofdrypowder

heldby

PEfirmsandstuntedvaluationsfor

manypubliclytraded

strategics

havefurthergrown

PrivateEquitybuyers’

shareoftheM&Amarket.2Q23

SaaSM&A

Activity

byBuyerTypeHistorical

M&A

Activity

byBuyerTypeStrategicBuyersPrivateEquityBuyersPrivateStrategic,16.7%Publicly

TradedStrategic,

21.9%61.2%59.5%61.3%59.8%57.9%PrivateEquityPlatform,8.9%42.1%40.2%40.5%38.8%38.7%PrivateEquityBacked

Strategic,52.4%2Q223Q224Q221Q232Q23(1)

Privateequity

drivendeals

includePrivateEquity

PlatformandPrivateEquity

BackedStrategic.PrivateEquity

Platformincludesprivate

equityfirms

makingplatform

acquisitions,whilePrivateEquity

BackedStrategicincludesallstrategic

buyers

backedby

aprivate

equity

firm.112Q23

SelectMost

Active

Buyers

ofSaaS:

Strategic

Buyers(1)DealCountBuyerSaaSSellers(certain

assets)33(certain

assets)241310665544(1)

Transactionslistedmaynot

includealldeals

by

the

buyer.

Thetransactionslistedwere

announcedinthe

last12months.122Q23

SelectMost

Active

Buyers

ofSaaS:

PrivateEquity

Investors(1)DealCountBuyerSaaSSeller1)

Transactionslistedmaynot

includealldeals

by

the

buyer.

Thetransactionslistedwere

announcedinthe

last12months.132Q23

SelectNotable

SaaSDeals:

MegaDeals(1)EV/TTMRevenueSeller

PC/VerticalBuyerSaaS

SellerEV(M)$10,700.3$4,600.0$2,791.7$1,439.4$1,300.0$1,000.0Seller

DescriptionCompliance

Management/HorizontalProvides

financial

risk

andregulatorymanagementSaaS

forbusinesses.N/AN/A6.4xN/AN/AN/AFinancial

Applications

/HorizontalProvides

AI-based

IT

business

management

and

ERP

SaaS,andrelated

APIsforbusinesses

intheUS.Provides

credit

card

andpayment

processing

SaaS,systems,

services,

APIs,andrelated

mobile

applications

forbanks,

financial

institutions,andretailers

globally.Financial

ApplicationsProvides

HR-related

employee

engagement,

benefitsmanagement,andteamcollaboration

SaaS

andrelatedmobileapplication

forbusinesses

globally.HumanCapital

Management/HorizontalProvides

machinelearning

andgenerative

AImodeldevelopment

SaaS,

APIs,related

SDKs,

andopen-sourceon-premise

software

tobusinesses

globally.Dev

Ops&It

Management/HorizontalProvides

cloud-native

digital

bankingandpaymentsprocessing

SaaS

andrelated

APIsforfinancial

institutionsglobally.Financial

Applications(1)

Includes

M&A

deals

estimatedto

be

greaterthan

$1BinEnterprise

Value.142Q23

SelectNotable

SaaSDeals:

Mid-Market(1)EV/TTMRevenueSeller

PC/VerticalBuyerSaaS

SellerEV(M)$826.3$650.0$420.1$250.0Seller

DescriptionProvides

embedded

endpointanddata

access

securityintegrity

andIT

asset

managementSaaS,

APIsandSDKs,andrelated

mobileapplications

forbusinesses

globally.3.8xN/A1.6xN/ASecurity

/HorizontalProvides

AI-based

legal

research

andautomatedworkflowmanagementSaaS,

APIs,andSDKforlegalprofessionalsglobally.Content&WorkflowManagement/LegalSales

&Marketing

/HorizontalProvides

omnichannelbrandmarketing

SaaS

forbusinessesglobally.Security

/FinancialServicesProvides

blockchain-based

digital

asset

custody

andtokenizationSaaS

tofinancial

institutionsglobally.(1)

Includes

M&A

deals

estimatedto

be

greaterthan

$250Mandlessthan

$1BinEnterprise

Value.152Q23

SelectNotable

SaaSDeals:

Lower-MidMarket(1)EV/TTMRevenueSeller

PC/VerticalBuyerSaaS

SellerEV(M)$200.0$157.7$145.9$70.0Seller

DescriptionAnalytics

&Data

Management

Provides

business

analytics

anddata

science

SaaS

andAPIs/Horizontal

forbusinesses

globally.N/AN/AN/AN/AN/AN/AAnalytics

&Data

Management

Provides

AI-based

data

analytics

SaaS

tobusinesses

inthe/Healthcarehealthcare

industry

globally.Provides

property

valuation

SaaS,

APIs,andonlineservicesforbusinesses

inthefinanceandreal

estate

industryglobally.Analytics

&Data

Management/Real

EstateProvides

identity

verification

SaaS,

APIs,andrelated

SDKstobusinesses

globally.Security

/HorizontalProvides

talent

attraction,

engagement,andacquisitionmanagementSaaS

andrelated

mobileapplication

tobusinesses

globally.HumanCapital

Management/Horizontal$52.0Provides

AI-enabled

human

capital

managementSaaS

andrelated

APIsformid-market

andenterprise

businessesglobally.HumanCapital

Management/Horizontal$52.0(1)

Includes

M&A

deals

estimatedto

be

lessthan

$250MinEnterprise

Value.16Exclusively

focused

onsell-side

M&A

advisory

servicesfor

B2BsoftwarecompaniesSee

All

Transactions172Q23

SaaSPublic

MarketSummary●

Publicly

tradedSaaS

businesses

rebounded

nicely

following

2022’s

market

correction.

TheSEGSaaS

Index

median

EV/TTM

Revenuemultiplefor

2Q23

was

6.0x,

slightly

improvingover1Q23’s5.8x

figure.

Junepostedthesecond-highest

monthlymultiplein

thepastninemonths(5.9x),

indicatingcontinued

recovery.●

Indices

across

theboardhave

improved

inmedian

share

price

YTD.TheSEG

SaaS

Index

hasimproved

19.1%

following

asteepincrease

attheendof

June,

whileNASDAQ

hasimproved

an

impressive31.7%.

Cooling

inflation,rapidAIadoption,

andoverall

improvinginvestoroptimismfor

manytech

stocks

are

alldriving

factors.

Significant

contributors

totheSaaS

Index

growth

YTD

include

C3.ai(up226%),Weave(up

143%),andSamsara

(up

123%).●

With

operating

efficiency

top

ofmind,many

businesses

in

theIndexhave

seen

areduction

in

operating

expenses

as

apercent

ofrevenue(notable

decrease

inrelativeS&M

spendYOY)andan

improvement

incashflow

fromoperations

(14.9%on

amedian

basiscompared

to7.1%

lastyear).

Highlyprofitablebusinessesare

rewarded

withan8.4x

multiple,40%higherthantheIndexmedian.●

Thetopquartile

EV/TTMRevenue

multiple

for2Q23was

9.1x,increasing

from8.8xin1Q23and8.5xin

4Q22.

Onaverage,

companieswithin

theupperquartilerange

burn

lesscash,havestronger

grossmargins,

and

astronger

ruleof

40

thanthebroader

Index.●

TheSEG

SaaS

Index

continues

togrowat

animpressive

scale,

postingmedian

TTM

revenue

of$679M

andagrowth

rate

of20.3%.Please

reach

out

withanyquestionsorto

discussourrelevantmarketinsights.19SEGSaaSIndex

UpdatesADDITIONSIncludes

companies

thathavebeenadded

totheIndex

due

toIPO,SPACacquisition,ortransitioned

fromalicense-based

modelto

SaaSUPCOMINGINDEXADDITIONSIncludes

companies

thathaverecentlygonepublicbutareexcluded

fromtheIndex

thisquarter

due

toalack

ofpubliclyavailable

financialdataREMOVALSIncludes

companies

thathavebeenremovedfromtheIndex

due

toacquisition20SEGSaaSIndex

OverviewOurQ2SEGSaaS

Indexcomprises

122publiclytraded

companies

thatprimarilyoffer

solutionsvia

thecloud(1).The

Index

isupdatedevery

quarterdependingonacquisitions,IPOs,

readilyavailablefinancial

data,

andchanges

in

businessmodels.

Ifacompany

is

added

or

removed

from

theIndex,

were-runhistorical

datatoincludeitsfinancialsand

analyzehow

itchanges

themetrics.SEG

SaaS

Index

MedianMetricsMeasureEV/NTMRevenue2Q226.1x3Q225.7x4Q225.0x1Q235.1x2Q235.4xEV/TTMRevenueEV/TTMGrossProfitEV/TTMEBITDA7.2x6.4x5.4x5.8x6.0x9.9x8.5x7.4x8.6x8.2x38.3x31.6x71.2%-12.0%-19.9%7.1%41.8x25.8x70.9%-12.4%-20.9%5.3%42.3x24.4x71.4%-5.4%-14.0%6.9%41.7x25.0x72.2%-2.2%-9.1%11.4%$641.6-$43.822.9%13.8%$228.046.9x25.7x71.8%-4.0%-13.4%14.9%$678.7-$39.720.3%16.7%$247.0EV/TTMCFOGrossProfitMarginEBITDAMarginNetIncome

MarginCFO

MarginTTM

TotalRevenue

(M)TTM

TotalEBITDA(M)YOYRevenue

GrowthYOYEBITDAGrowthCash

&Eq(M)$523.2-$32.128.3%17.7%$297.7$580.3-$43.227.4%13.3%$261.3$603.7-$43.726.1%21.2%$262.7(1)

Companies

in

the

SEG

SaaSIndex

mayhave

asubscription

or

transaction-based

pricingmodel.21SEGSaaSIndex:YTD

Stock

MarketPerformanceThetechnology

sectorhasperformed

impressivelyinthepublicmarkets

YTD,

primarilydriven

byAI-fueled

excitement

andgeneral

market

optimismaround

cooling

inflationandthepotential

forslowinginterest

rate

hikes.

TheNASDAQposted

animpressive31.7%

growth,

and

theSEGSaaS

Indextrended

nicely,growing

asolid

19.1%

through

theendof2Q23andoutpacing

theS&P

500(up15.9%

YTD).

Notable

tech

companies

contributingtoNASDAQ’sgrowth

includeMetaand

NVIDIA,

which

are

notincludedintheSEGSaaS

Index.Significant

contributors

totheSEGSaaS

IndexgrowthincludeC3.ai(up

226%),Weave(up143%),and

Samsara

(up123%).DowJonesS&P500NASDAQSEGSaaSIndex40.0%30.0%20.0%10.0%0.0%31.7%19.1%15.9%3.8%-10.0%-20.0%-30.0%JanuaryFebruaryMarchAprilMayJune22SEGSaaSIndex:TTMRevenue

GrowthRate

Distribution(1)RevenuePerformance2Q22

2Q23Similarto

recent

quarters,theIndex’sYOYrevenuegrowth

ratedistribution

haschanged

significantly.

There

hasbeen

anotabledecrease

in

hyper-scalingSaaS

businesses,

likelyattributed

toashifting

focus

onoperational

efficiency,

tighterbudgets,and

longersalescycles

in

some

industries.28.3%26.2%25.4%24.8%22.1%21.2%15.6%14.2%11.5%10.7%ThenumberofSaaS

companies

growing

over40%

decreased

from24.8%

to10.7%,

withmanynow

residinginthelower

growthcohorts.

Asinflationslowsandinterest

rate

hikesease,

furtheroptimismsurroundinggrowth

stockswill

likelyimprove.<=10%>10%<=20%>20%<=30%>30%<=40%>40%TTM

Revenue

GrowthTTMRevenue

Performance

-

Quarterly$800.0$700.0$600.0$500.0$400.0$300.0$200.0$100.0$0.040.0%35.0%30.0%25.0%20.0%15.0%10.0%5.0%$678.7$641.6$603.7$580.3$523.20.0%2Q223Q224Q221Q232Q23(1)

Logoscorrespond

to2Q23data.23SEGSaaSIndex:PublicMarketMultiples–MonthlyTTM(1)Themonthlymedian

EV/TTM

Revenuemultiplefor

theSEGSaaS

Indexhasremained

resilientinrecent

months,

reaching

5.9x

in

June.Thismultiplerepresents

thesecond

highestin

thelastninemonths

anda5%jumpoverMay.Asnoted

previouslyregarding

theIndex’s

impressive

median

sharepriceperformance,

similarkeydriversbehindtherecent

strengthofmonthlyrevenuemultiplefigures

includeimprovinginflationoutlook,

hopesof

easinginterestrates,

andrapidlyaccelerating

artificial

intelligence

adoption.

Monthlymultiplesshowconsiderable

stabilityin

the

pasttwelvemonthsamidst

avolatilebroader

market

backdrop.6.9x6.5x6.1x6.1x5.9x5.9x5.7x5.7x5.6x5.4x5.4x5.2x5.2xJuneJulyAugustSeptember

October

November

December

JanuaryFebruaryMarchAprilMayJune(1)

Monthly

medianEV/TTM

Revenue

multiples

derivedby

findingthe

median

Enterprise

Valueoverthe

entiremonth,

divided

by

the

lastavailableTTMRevenuefigure.

TTMRevenueisbased

onthelastavailablefinancial

statement

andmay

be

onequarter

inarrears.24SEGSaaSIndex:EV/TTMRevenueMultiplesTop

quartilebusinesses

intheSaaS

Indexboasted

animpressive9.1xmultiplein

2Q23,42%

higherthantheIndex

average

and

52%higherthantheIndex

median.

Thesepremium

multiplesare

generally

rewarded

tobusinessesburninglesscash

thanthebroader

Index

(-1.4%compared

to-8.7%onaverage)

andgrowing

at

ahigherrate

(34.3%compared

to22.6%).OutliermultipleswithintheIndex

havehistoricallycontributed

toanotablyhigheraverage

EV/TTM

Revenue

multiplethanthemedian.

Ashigh-flying

SaaS

valuationshavecooled

down

in

recent

quarters,

theaverage

andmedian

valueshavebecome

closerinproximitythanhistorical

periods.UpperQuartileAverageMedianLowerQuartile10.7x10.0x9.1x8.8x8.5x8.4x7.9x6.5x5.8x6.3x7.2x4.0x6.4x6.4x3.7x6.0x3.1x5.4x2.9x3.3x2Q223Q224Q221Q232Q2325SEGSaaSIndex:EV/TTM

RevenueMultiple

Distribution(2)EV/TTMRevenueMultiples2Q22

2Q2345.9%Fewer

companies

are

valued

with

outliermultiplessincethewinddownfroman

unprecedented

valuation

environment

thatthepandemiccreated

forSaaS.

Like

2Q22,thisquartersaw

halfof

theIndex

resideinthe5x-15x

EV/TTM

Revenuerange.

Notably,

2Q23

sawadecrease

inhigh-flyingmultiplesandan

increase

in

lower

ones.37.7%36.1%36.1%17.2%12.3%10.7%Themedian

EV/TTM

Revenuemultiplejumped3%from

5.8x

in

1Q23to6.0x

in

2Q23.Despitethenearly

17%

decrease

YOY,themultiplehastrended

up

nicelysincebottoming

out

in

4Q22.

Thiscontinuedrebound

is

apromisingindicator

ofthedurability

of

SaaS

businessesinthecurrent

market

followingthepost-pandemic

cooldown.4.1%<=5.0x>5.0x<=10.0x>10.0x<=15.0x>15.0xEV/TTM

RevenueEV/TTM

RevenueMultiple

-Quarterly(1)7.2x6.4x6.0x5.8x5.4x2Q223Q224Q221Q232Q23(1)(2)Quarterly

EV/TTM

Revenue

multiples

arederived

by

findingthemedian

Enterprise

Value

overthe

entirequarter,

dividedby

thelastavailable

TTMRevenue

figure.

TTMRevenueisbased

onthe

lastavailablefinancial

statement

andmaybe

from

onequarter

prior.Logoscorrespond

to

2Q23data.26SEGSaaSIndex:Financial

PerformanceManySaaS

businesseshavetightened

budgetsin

recent

quarters

t