SaaS Multiples
topic on 5 shows · 12 statements across 11 episodes
the Official SaaStr Podcast 
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12 statements about SaaS Multiples, every show
O'Driscoll: SaaS multiples collapsed because average growth dropped to 10%
“The collapse in the SAS multiples, and you've said this, has happened because of the collapse in the SAS growth rate. I mean, we didn't just, you know, like the average company used to grow at 30%, and now it's what? It's sub 10. It's 10.”
Hays: SaaS multiples are falling because AI uncertainty is driving derisking
“And if you just don't know what the world looks like or what work looks like, you want to take some risk off. You're not willing to pay the same revenue multiple that you were three years ago.”
Frankel: Public SaaS multiples dropped from 20x in 2021 to 5-6x
“So if you look at SAS multiples in 21, 20, Where that was 20 X, and then you look at those SAS multiples as five, six X, that trickles down.”
SaaS valuation multiples have compressed by roughly 80% since 2020
“A lot of companies out there have raised a series A or maybe a series B in 2020 or 20 21, and they might not have grown into that valuation yet because the multiples in the markets have just compressed by 80% or something.”
Donovan: Median SaaS multiples fell two-thirds from 15x to 5x
“We were at the 15 X or so back a year ago. We're now down to, you know, five, five X, right? So we're off basically two thirds of SAS multiples.”
Donovan: SaaS multiples had no statistical link to margins or CAC pre-2022
“What is kind of surprising is during that period, there was no statistical relationship between your multiple and your margin, your gross margin, or your CAC, your sales and marketing efficiency.”
Haaland predicts SaaS valuation multiples will return to 8x-9x
“In this market, you would be insane not to honestly. So yeah, I do think we're going to bounce back to that level. Hopefully not in a too far distant future.”
Lemkin: Public SaaS multiples will rebound 20% to 40% by late 2023
“And so I'm pretty bullish at the end of this year. I'm bullish that multiples will be up somewhere between 20 and 40%, and I believe that will lead to a rush to deploy capital, but for founders, you have to understand that will never lead to a return of 2021.”
Lemkin: SaaS multiples will rise 20% to 40% by end of 2023
“And so I'm pretty bullish at the end of this year. I'm bullish that multiples will be Up somewhere between 20 and 40%, and I believe that will lead to a rush to deploy capital, but for founders, you have to understand that will never lead to a return of 2021.”
Scott Wingo: Spiffy raises at 50% to 60% of SaaS valuation multiples
“We're SaaS-like but we should, you know, we don't earn SaaS multiples. So, so we've been getting, you know, kind of like around a little, around half to 60% of SaaS multiples, which I'm okay with because I've been in the other situation where, you know you hav…”
Sacks: Average public SaaS revenue multiple collapsed from 15x to 5.6x
“And yet, you know, the SAS index is down like 80%. You know, the average SAS multiple, it was over 15 times, you know, last year in the, on the public comps, and now it's down to 5.6.”