The E-Spring B2B SaaS Index (2022 Q2)

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SaaS stocks continued to plunge in this second quarter of the year. The E-Spring index fell by around 35 % in this quarter alone.

The second quarter of 2022 has seen a confirmation of the fall in public SaaS companies’ valuations. Financial markets have lived to the rhythm of the central banks’ interest rate hike announcements and record inflation. Over the last twelve months, our index has decreased from 13.42x (EV/Sales) down to 6.60x, which represents a 51% decrease. We also observe a 35% decline in this quarter alone. With the unstable environment, investors are taking refuge in safe havens and shying away from riskier assets, such as technology stocks. Crypto assets holders are in the best position to confirm this…

EV/Sales over 18 Months

Index 2022 removals and additions

In the last three months, two companies in our index, Medallia Inc and Mimecast Ltd have been acquired by private equity funds, Thoma Bravo and Permira respectively. We have therefore decided to replace them with UK-based software editor The Sage Group and GK Software, a German retail software provider.

NameCountryMarket Cap (€)EV/Sales 2022EV/EBITDAP/E 2022
Adobe Inc.US164 Bln9.6x19.4x26.9x
Alteryx, Inc.US3.15 Bln4.3x
Anaplan, Inc.US9.16 Bln15.8x
AppFolio, Inc.US3.02 Bln6.6x
Atlassian Corporation PlcAU45.5 Bln17.0x69.8x111.0x
ATOSS Software AGDE962 Mio8.4x29.1x50.4x
ATTRAQT Group plcUK58.3 Mio1.9x24.3x
Avalara, Inc.US5.92 Bln6.6x
Avast plcCZ6.23 Bln7.2x14.5x19.4x
AVEVA Group plcUK7.86 Bln6.2x56.6x
BlackLine, Inc.US3.77 Bln7.4x97.6x
Datadog, Inc.US28.7 Bln18.1x119.0x
DocuSign, Inc.US11 Bln5.4x
Dynatrace, Inc.US10.8 Bln12.0x91.6x
Elastic N.V.US6.13 Bln7.1x
Everbridge, Inc.US1.05 Bln3.0x38.3x95.1x
GitLab Inc.US7.5 Bln27.5x
GK Software SEDE293 Mio1.9x9.4x20.6x
HubSpot, Inc.US13.7 Bln7.9x63.3x116.1x
Matterport, Inc.US986 Mio2.8x
Nemetschek SEDE6.67 Bln8.6x26.1x40.7x
New Relic, Inc.US3.2 Bln4.0x
PagerDuty, Inc.US2.08 Bln6.9x
Paycom Software, Inc.US15.5 Bln12.0x30.0x50.3x
salesforce.com, inc.US157 Bln6.2x53.3x113.7x
ServiceNow, Inc.US91 Bln12.4x39.6x63.8x
Sidetrade SAFR173 Mio4.1x39.9x80.6x
Smartsheet Inc.US3.89 Bln6.7x
Splunk Inc.US13.6 Bln5.9x
TeamViewer AGDE1.75 Bln3.6x7.3x10.9x
The Sage Group plcUK7.49 Bln3.5x14.6x24.0x
UiPath Inc.US9.46 Bln9.1x
Unity Software Inc.US10.4 Bln7.9x
Veeva Systems Inc.US29.3 Bln15.3x53.2x71.8x
Wix.com Ltd.Other3.56 Bln2.1x23.9x
Workday, Inc.US33.9 Bln6.5x
Workiva Inc.US3.28 Bln6.1x
Yext, Inc.US564 Mio1.2x
Zendesk, Inc.US8.72 Bln5.2x51.4x94.6x
Zuora, Inc.US1.1 Bln2.9x
Median6.6x38.3x63.8x

Capital IQ S&P data

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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