This week we’re keeping it short and snappy with SEG’s SaaS Index Overview, released August 2022.
Public SaaS company valuations continue to hover above July lows, reaching 6.7x EV/Revenue in August compared to July’s 6.0x multiple.
This volatility will continue as the tug of war between fighting inflation and avoiding a recession plays out.
Here are three highlights from the overview:
- Human capital management continues to lead all other product categories, as the cohort gained 4.4% from July to August after being down 21% YTD in July.
- Communications and Collaboration posted the lowest YTD price performance, with equities in the category declining 56.7% thus far in 2022. The product category has continued to come back to earth after it experienced exorbitant highs due to the rapid acceleration of remote work experienced during COVID.
- Qualys (10.7%), PowerSchool (9.3%), and Alteryx (3%) are three of five companies posting positive YTD returns.
Here is SEG’s full report: