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Posted On: 09/23/2019 6:09:27 PM
Post# of 33049
This article about SaaS valuation is from 2016, but the basics facts are still the same. https://techcrunch.com/2016/10/07/determining...s-company/
Summarized, the valuation/revenue multiple of a private or public SaaS business mainly depends on:
1. The average revenue multiple of public SaaS companies
2. Revenue growth
In addition, these factors also affect the final revenue multiple:
1. Size of the market
2. Retention rate
3. Gross margins
4. Capital efficiency
Everyone has to do their own analysis and see what multiple they get for Verb, but if the company keeps growing SaaS revenue 40% q over q, there is no way it can be valued under 10x revenue multiple.
I’d say that 2-4 Qs of consistent SaaS growth, and it’s more realistic that we're closer to 15-20x multiple.
Summarized, the valuation/revenue multiple of a private or public SaaS business mainly depends on:
1. The average revenue multiple of public SaaS companies
2. Revenue growth
In addition, these factors also affect the final revenue multiple:
1. Size of the market
2. Retention rate
3. Gross margins
4. Capital efficiency
Everyone has to do their own analysis and see what multiple they get for Verb, but if the company keeps growing SaaS revenue 40% q over q, there is no way it can be valued under 10x revenue multiple.
I’d say that 2-4 Qs of consistent SaaS growth, and it’s more realistic that we're closer to 15-20x multiple.
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