We’re back with our 8th edition of Vertical SaaS, Today — our monthly round up of how vSaaS is performing in the public markets.
A few interesting learnings from the data:
- There are only four vertical SaaS companies that are trading above 10x EV/LTM Rev multiple (Shopify, Veeva, Aspen, and Procore.) Conversely, in SaaS broadly (not just vertical) — there are eighteen public companies trading above 10x on a forward revenue multiple basis. There are four public SaaS companies trading above 15x on a forward revenue multiple basis (none in Vertical SaaS). I personally don’t love a forward revenue multiple, as its more of a forecast than a historical — so you’ll rarely see it in my analysis.
- There are nine vertical SaaS companies that have more than $1B of revenue, measured on a LTM basis. If you’ve been investing in software as long as I have — this is an AMAZING achievement. The market sector has come so far.
- For the first time, certain companies are showing declining YoY growth (Envestnet, 2U, and Blend.)
Key Metrics (As of 05/31/23)
- Total Number of Companies: 20 — No change.
- Total Market Cap: $254.1B — small step up with a 1.27% increase.
- Largest Market Cap: Shopify again at the top spot at $73.1B, with a meaningful jump of 8.14% since April’s number (we didn’t track May given our special 7th edition.)
- Lowest Market Cap: Blend Labs is still the lowest market cap, but back up substantially (54.1% increase) to $241.1M. The lowest performing stocks seem to show a lot of variability MoM.
- Average Market Cap: $12.7B, up 1.6%.
- Average LTM Total Revenue: $1.69B, roughly in line with April’s number.
- Highest LTM Total Revenue: $7.1B. Constellation Software still claims the top spot. Shopify is a close second at $5.9B.
- Average LTM Gross Margin: No real change, still at 55.9%.
- Highest EV/LTM Revenue Multiple: Shopify at 11.8x. Veeva is a close second at 10.6x.
- Lowest EV/LTM Revenue Multiple: Blend Labs at 1.0x.
- Average EV/LTM Revenue Multiple: 6.1x, down from 6.5x in April.
- Median EV/LTM Revenue Multiple: 6.2x, down from 6.5x in April.
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