A Close Look at SaaS Valuation


blog.intercom.io – The first half of this year saw a correction in SaaS values but digging into the data shows that SaaS companies have still outperformed the market as a whole. Since Intercom is a SaaS company I thought it would be interesting to take a more in-depth look at the market as well as the broader software sector today, and point out some common characteristics of successful SaaS businesses as defined by the public markets. Technology investors in the public markets are attracted to SaaS companies in large part due to their steady stream of recurring revenue, but also because they have strong growth prospects relative to traditional software companies. In the last decade there has been a surge of SaaS IPOs, as the business model has become the norm for both developers and end users. The hyper-growth nature of these companies has drawn a lot of attention to the sector, and while multiples and valuations have contracted in recent months, they are still extremely strong when looked at from a longer term historical perspective.

But is there more that what meets the eyes? Find out at blog.intercom.io


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