SaaS Valuations
topic on 2 shows · 5 statements across 5 episodes
the Official SaaStr Podcast 
Top Founders
5 statements about SaaS Valuations, every show
Pepper: 2022 SaaS sell-off reflects valuation excess, not business performance
“And I think what that tells you is that the performance of the companies is often disconnected from the valuations. And so what we're seeing today is not a judgment on the performance Of the companies or their quality or the opportunity ahead. It's simply a re…”
Latka: 150% NDR drives 40x to 50x SaaS premium valuations
“Some of the valuations where you're seeing 40 and 50 X multiples are ones where net dollar retention is like a 150%, even if revenue growth overall is slower, but your NDR is really high. That's by far where the premium valuations are happening today.”
Latka: Highest SaaS valuations require net dollar retention over 150%
“The companies right now, they're in the highest valuations. They all have net dollar retention above 150%. Right. So like, that's one of the key, that plus just overall growth rate are really the key drivers I'm seeing today of SAS valuations.”
Kellogg: NDR Is a Financing Enabler, Not a Valuation Driver
“So it's not a valuation driver. I now think of it as a financing enabler, right? Okay. So a higher one isn't necessarily by itself going to drive a higher valuation, but I could tell you if you don't have a high enough one, you're not going to be able to raise…”