The Software Equity Group (SEG) regularly publishes quantitative research on the software and SaaS market M&A activity. In August, median valuations declined to lowest in 2021
SaaS valuations are at an almost all-time high. The Software Equity Group reported that the median EV/Revenue multiple for public SaaS companies in Q2 2021 was 14.3x. The top 25 SaaS companies in the SEG SaaS Index had EV/Revenue valuations that ranged from 25.3x (Sprout Social) to 90.4x (Snowflake). While Gong’s most recent valuation of $7 billion on $120 million ARR is high – 60.4x – it is not unreasonable. Gong has shown consistent high revenue growth coupled with a strong ROI for its customers.
Pitchbook is basically the gold standard when it comes to data about VC, and Private Equity financing, and M&A activity. Recently Pitchbook published some great free research on US VC valuation trends. I have excerpted a few of the charts from the 27-page report. Net netthings look very good.
American product managers should live overseas for a while. In a global software economy, it is a requirement. You will develop empathy for your international colleagues. You will learn the needs of all your customers that you cannot do from just a Zoom call.
Understanding Enterprise Value can help product managers in many ways. It can help you understand how your product contributes (or doesn’t contribute) to your company’s overall success. It can help you justify more investment in your product when you can explain how the investment will grow Enterprise Value
I was surprised that SEMrush, the SEO optimization platform, had gone public and is on track to generate over $150M in revenue in 2021. A closer look at their financials explains why they have a premium valuation to other SaaS companies.
The Software Equity Group continues to publish excellent research on software-related M&A activity. Q2 2021 showed a modest decline in SaaS operating metrics. There was a sequential increase in Enterprise Value/ Revenue valuations in comparison to Q1 2021
The Software Equity Group’s Q1 2021 M&A Update & SaaS Public Market Update show continued record valuations for both on-premise and SaaS firms. Median EV/Revenue multiples for public SaaS companies reached 14.2x. Once again, private equity drove more than 50% of the transactions.
There is a ton of information from thought leaders about product managers build/buy/decision making. Do product managers really have a choice?
Product managers should have basic financial literacy, but the implications of new accounting policies like ASC 606 and ASC 606-340 exceed most product manager’s finance capabilities. Instead product managers should become best friends with the Finance organization who can help them navigate this new, complex world. And they might save their products and jobs in the process.