The E-Spring B2B SaaS Index (2021 Q2)

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Since the previous quarter, the E-Spring B2B SaaS B2B Index 2Q21 remained relatively flat with no sign of slowdown. The Q2 Index closed at 13,68X EV/SALES 2021 compare with 14,92X EV/SALES 2021 in Q1 2021.

This second quarter did not start well for Public SaaS companies as investors were changing their minds, moving from tech focus to a more value investing approach supported by the inflation rate and the expectation of a return to the normal situation as vaccines rollout. This being favorable for cyclical stock.

This shift did not last long as Public SaaS recovered well during this last month of June erasing the huge drop in April and May (-15% on average). The support for SaaS companies could be analyzed on different aspects: 

  • The pivot to remote work will stay even after pandemic time;
  • Data continues to be a driving force for many industries;
  • Cloud consumption will remain high with a shift in IT infrastructures; and
  • The convenience of SaaS solutions with easiness of deployment.
NameCountryMarket Cap (EUR)EV/SALES 2021EV/EBITDA 2021P/E 2021Sales CAGR
(2018 – 2020)
Adobe Inc.US239 Bln18,0x35,6x48,0x19,40%
Alteryx, Inc.US4,93 Bln9,9x39,80%
Anaplan, Inc.US6,74 Bln17,3x43,80%
AppFolio, Inc.US4,16 Bln13,7x27,70%
Atlassian Corporation PlcAU56 Bln31,7x35,40%
ATOSS Software AGDE1,57 Bln15,7x51,1x86,8x17,20%
ATTRAQT Group plcUK93,7 Mio3,2x58,0x10,70%
Avalara, Inc.US11,9 Bln20,7x35,60%
Avast PlcCZ5,88 Bln8,1x14,6x18,4x5,10%
AVEVA Group plcUK13 Bln14,2x74,9x30,90%
BlackLine, Inc.US5,57 Bln15,5x24,30%
Blue Prism Group plcUK902 Mio3,8x60,00%
Datadog, Inc.US27,9 Bln36,3x74,50%
DocuSign, Inc.US46,7 Bln37,10%
Dynatrace, Inc.US14,5 Bln24,6x17,10%
Elastic N.V.US11,5 Bln21,8x63,50%
Everbridge, Inc.US4,52 Bln14,9x35,80%
HubSpot, Inc.UK23,5 Bln22,0x31,20%
Medallia, Inc.US4,52 Bln10,9x24,10%
Mimecast LimitedUK2,96 Bln6,9x47,2x117,8x27,70%
Nemetschek SEDE7,45 Bln11,6x39,8x67,6x13,60%
New Relic, Inc.US3,74 Bln6,2x29,90%
PagerDuty, Inc.US3,15 Bln16,0x44,50%
Paycom Software, Inc.US18,2 Bln21,1x53,6x87,2x21,90%
RIB Software SEDE1,51 Bln4,2x15,7x39,9x36,40%, inc.US192 Bln10,3x69,9x55,9x27,40%
ServiceNow, Inc.US93 Bln18,8x60,6x99,6x31,60%
Sidetrade SAFR209 Mio5,4x70,9x140,8x10,00%
Smartsheet Inc.US7,79 Bln23,1x56,00%
Splunk Inc.US19,9 Bln11,0x34,20%
Talend S.A.FR1,81 Bln6,6x18,20%
TeamViewer AGDE6,38 Bln12,6x24,0x36,2x32,80%
Unity Software Inc.US26,1 Bln29,0x42,40%
Veeva Systems Inc.US41,3 Bln32,3x128,8x26,40% Ltd.IL13,9 Bln12,3x28,00%
Workday, Inc.US51,4 Bln13,8x30,10%
Workiva Inc.US4,76 Bln13,0x20,00%
Yext, Inc.US1,56 Bln5,0x32,50%
Zendesk, Inc.US14,9 Bln13,3x31,10%
Zuora, Inc.US1,9 Bln7,0x27,00%
Median  13,68x51,10x77,20x30,50%

Source: S&P Capital IQ, Valutico (01/07/2021)

Index background 

Our basket is of course partial and has no intention to reflect perfectly the entire SaaS Public landscape. Our goal is to give an outlook of the market with a more balanced index of what is available with the US Nasdaq SaaS index. More than 100 Public SaaS companies are available. Here, we focus on European-born leaders like Avast, Datadog, Elastic, Talend, TeamViewer, Zendesk, …

At E-Spring, we like to keep an eye on the SaaS Public companies. The market data gives good insights when we do a private SaaS business valuation. In some ways, it’s always connected to the market. It shows the trends and the confidence in the sector. Who are the champions of the league. So, we decided to construct our own SaaS index of 40 companies that we selected as being as much as possible representative of the SaaS B2B market, keeping the right balance between the US and Europe (European-founded public SaaS companies).

For this outlook, we choose a quarterly report to keep a mid-term view of the market. As much as possible we will keep the same basket but feel free to interact with us to enrich this exercise. We hope it will be helpful in these particular times.

Do you have questions regarding SaaS business valuation? Contact us.

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