The E-Spring B2B SaaS Index (2022 Q1)

SaaS stocks plunged in the first quarter of the year. The E-Spring index dropped by around 21% in terms of EV/Sales.

The first quarter of the year remains on the same trajectory as the year end of 2021 with a decline in valuation. Public SaaS companies are now trading at 2020 type levels. We seem to be returning to a more 'normal' situation with the end of the US monetary stimulus. The macroeconomic context has also turned negatively with the geopolitical context and rising interest rates.

EV/Sales evolution over last 15 months

Index 2022 removals and additions

2021 has been a busy one for mergers and acquisitions, with some big private equity deals in the SaaS software space. This means that our basket has to take into account the delisting of a few companies:  Blue Prism Group was acquired by private equity firm Vista Partners, Talend was acquired by PE fund Thoma Bravo and Rib Software by Schneider Electric.   

We decided to replace Blue Prism by UiPath (European born leader in the RPA software) and Talend by GitLab and Rib Software SE by Matterport.

NameCountryMarket Cap (€)EV/Sales 2022EV/EBITDA 2022P/E 2022
Adobe Inc.US195 Bln12.1x24.4x33.8x
Alteryx, Inc.US4.37 Bln6.6x
Anaplan, Inc.US8.82 Bln16.1x
AppFolio, Inc.US3.55 Bln8.5x77.1x
Atlassian Corporation PlcAU69.1 Bln28.2x
ATOSS Software AGDE1.43 Bln12.6x42.7x73.0x
ATTRAQT Group plcUK72.7 Mio2.1x26.9x102.5x
Avalara, Inc.US7.9 Bln9.7x
Avast plcCZ6.97 Bln8.1x14.6x19.2x
AVEVA Group plcUK8.74 Bln6.5x20.0x23.0x
BlackLine, Inc.US3.96 Bln8.3x
Datadog, Inc.US42.3 Bln30.3x
DocuSign, Inc.US19.3 Bln10.2x
Dynatrace, Inc.US12.3 Bln14.9x57.1x70.4x
Elastic N.V.US7.62 Bln9.5x
Everbridge, Inc.US1.6 Bln4.6x58.2x
GitLab Inc.US7.13 Bln27.7x
HubSpot, Inc.US21.6 Bln13.6x
Matterport, Inc.US2.13 Bln13.0x
Medallia, Inc.US4.93 Bln
Mimecast LimitedUK4.79 Bln8.9x31.6x54.5x
Nemetschek SEDE10.1 Bln13.1x40.1x63.8x
New Relic, Inc.US4 Bln5.3x
PagerDuty, Inc.US2.77 Bln10.1x
Paycom Software, Inc.US18.8 Bln15.7x39.4x65.6x
salesforce.com, inc.US192 Bln8.0x69.1x147.4x
ServiceNow, Inc.US103 Bln15.1x47.6x77.0x
Sidetrade SAFR183 Mio4.4x50.6x107.5x
Smartsheet Inc.US6.5 Bln12.4x
Splunk Inc.US20.6 Bln9.2x
TeamViewer AGDE2.57 Bln5.0x9.9x21.1x
UiPath Inc.US13.7 Bln15.0x
Unity Software Inc.US26.8 Bln20.0x
Veeva Systems Inc.US29.6 Bln16.5x57.4x77.0x
Wix.com Ltd.Other5.34 Bln3.6x64.1x
Workday, Inc.US54.6 Bln11.5x
Workiva Inc.US5.42 Bln10.9x
Yext, Inc.US837 Mio2.1x
Zendesk, Inc.US13.1 Bln8.4x83.5x141.6x
Zuora, Inc.US1.72 Bln5.1x
Median10.1x45.2x70.4x
Source: S&P Capital IQ, Valutico (31/03/2022)

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.

Sign up below to download the E-Spring SaaS Capital Index excel file (include additional data):