SOFTWARE SECTOR REPORT - Q2 2021 - GCA Advisors
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SOFTWARE SECTOR REPORT Q2 2021
EXECUTIVE SUMMARY
Software Q2 2021
» In Q2 2021, M&A deal activity and private financing activity continued to grow whilst software performance in the public markets grew steadily
– IGV tech-software index is up 34.9% over the last 12 months, underperforming the S&P 500 by 3.0%
– Business Intelligence & Analytics has outperformed the other software segments, achieving 79.5% LTM growth as of Q2 2021
» Q2 ’21 saw ~$55Bn in financing deal value and ~$96Bn in M&A deal value
- 577 financings, 146.6% higher than Q2 ‘20
- 488 M&A transactions, 54.9% higher than Q2 ’20
» Significant M&A activity in Q2 includes acquisitions in the Financial Applications sector: Bill.com’s $2.5Bn acquisition of Divvy and Visa’s $2.1Bn acquisition
of Tink
» Sales & Marketing software had some of the largest financing deals in Q2 ‘21 led by the $1.0Bn financing of MessageBird, the $775MM financing of Perch,
and the $550MM financing of Kajabi
» Overall outlook in software growth remains healthy, particularly in the private markets
Select Q2 Active Investors Select Q2 Active Acquirers
Notes:
Sources: PitchBook, 451 Research, Capital IQ.
2GCA OVERVIEW
The GCA Software Team
Sector Coverage GCA US Team
VERTICAL SOFTWARE
Automotive E-commerce & Retail
Josh Wepman Chris Gough
Education Food & Agriculture Managing Director Managing Director
jwepman@gcaglobal.com cgough@gcaglobal.com
Industrial Insurance
Media & Communications Real Estate
Transportation & Logistics Travel & Hospitality
HORIZONTAL SOFTWARE
BI & Analytics Collaboration Software Kevin Walsh Glen Kruger
Managing Director Managing Director
CRM Enterprise Resource Planning kwalsh@gcaglobal.com gkruger@gcaglobal.com
Governance, Risk & Compliance Human Capital Management
Marketing Supply Chain Management
INFRASTRUCTURE SOFTWARE
Cybersecurity Data Management & Analytics
Rupert Sadler Saif Malik
SaaS / Cloud-Enablement Workflow Automation Managing Director Director
rsadler@gcaglobal.com smalik@gcaglobal.com
Key GCA Stats
24 Offices Globally Software Transactions in
GCA Executive Team
140+ the Last Three Years
Senior Bankers Todd Carter Geoff Baldwin
33 Covering Software Co-CEO, Co-CEO,
Technology-Related Managing Director Managing Director
330+ Deals in the Last 3 Years tcarter@gcaglobal.com Head of M&A
Senior Bankers
70+ Covering Technology
gbaldwin@gcaglobal.com
3GCA OVERVIEW
Deep Software Sector Expertise with Demonstrated Success Advising Large-cap Public and Private Companies on Complex Assignments
sold to
Advisor to ShowingTime
Notes:
The above transactions represent a compilation of past and current deals that GCA entities, including GCA Advisors, LLC, GCA Advisors Corporation and GCA Altium, have advised on.
Generally, GCA Advisors Corporation advises Asian-based transactions, while GCA Advisors, LLC advises U.S.-based transactions and GCA Altium advises UK/European-based transactions. At 4
times, multiple GCA entities may be retained to advise on the same transaction.DEAL DASHBOARD
Software Q2 2021
$95.2 Billion 1001 946 $182.3 Billion
2021 YTD Financing Deal Value (1)(2) 2021 YTD Financing Transactions (1)(2) 2021 YTD M&A Transactions 2021 YTD M&A Deal Value
Select Financing Transactions Quarterly Financing Deal Value (1)(2) Quarterly M&A Deal Value Select M&A Transactions (3)
Company Amount ($MM) $Bn $Bn
$96 Acquirer Target EV ($MM)
$86
$76
$1,000 $55 $19,700
$56
$40
$39
$1,000 $28 $12,300
$22
$15 $17 $18 $14 $16 $18 $22 $19
$5
$1,000 $5,600
Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
$900 $5,300
Quarterly Financing Deal Count (1)(2) Quarterly M&A Deal Count
$806 577 $4,000
532
469 488
458
424
389
$775 359 384 349 $2,500
315
284
227 211 234 215
198 222
$601 $2,220
$550 $2,144
Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21
LTM as of Q2 2021 Software Price Performance vs. S&P 500 (4)
40%
37.9%
SPX IGV
35% 34.9%
30%
25%
20%
15%
10%
5%
0%
(5%)
Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
Notes:
Sources: Capital IQ, PitchBook, 451 Research and Dow Jones VentureSource. Market data as of 6/30/2021.
1) Criteria based on software series A and subsequent rounds of global financings greater than or equal to $20MM.
2) Financings include software venture and private equity growth / expansion activity. 5
3) Software M&A transactions reflect select transactions in Q2 2021. M&A metrics are based on closed and announced transactions.
4) iShares North American Tech-Software ETF (IGV), used as proxy for software landscape. Top holdings in the ETF include ADBE, MSFT, ORCL, CRM and INTU.RECENT STOCK PERFORMANCE
Index Performance
Last 12 Months
160.0%
140.0%
120.0%
100.0%
80.0% 79.5%
45.4%
44.2%
43.2%
60.0% 40.4%
39.9%
39.1%
38.6%
35.9%
40.0% 35.1%
33.1%
30.4%
23.7%
20.0% 21.2%
0.0%
(20.0%)
Jun-20 Jul-20 Aug-20 Sep-20 Oct-20 Nov-20 Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21
BI & Analytics S&M Security Technical Content SaaS(1) ERP Vertical Development Platform Financial Infrastructure Nasdaq S&P 500
Low (1.1%) (3.3%) 0.0% (0.3%) (0.6%) (1.4%) (1.7%) 0.0% (3.8%) (4.3%) (1.1%) (4.3%) 0.0% 0.0%
Uptick from
80.5% 48.7% 43.2% 40.7% 40.5% 40.4% 37.6% 35.1% 36.9% 34.7% 24.9% 25.4% 44.2% 38.6%
Low
Performance
79.5% 45.4% 43.2% 40.4% 39.9% 39.1% 35.9% 35.1% 33.1% 30.4% 23.7% 21.2% 44.2% 38.6%
since Jul-20
Notes:
Sources: Capital IQ. Market data as of 6/30/21.
List of companies in each sector can be found in the public comparable tables. 6
1) SaaS bucket is a subset of the other buckets and includes companies that operate a software-as-a-service platform.SOFTWARE PUBLIC COMPANY LANDSCAPE
Subsector Top Players and Key Operating Stats
Platform Infrastructure Security
Combined Market Cap: $2,891Bn Combined Market Cap: $310Bn Combined Market Cap: $416Bn
21E/20A Rev. Growth: 6.3% 21E/20A Rev. Growth: 18.4% 21E/20A Rev. Growth: 15.9%
21E EBITDA Margin: 30.9% 21E EBITDA Margin: 16.6% 21E EBITDA Margin: 19.6%
Content & Storage Management BI & Analytics Financial Applications
Combined Market Cap: $405Bn Combined Market Cap: $115Bn Combined Market Cap: $594Bn
21E/20A Rev. Growth: 15.1% 21E/20A Rev. Growth: 21.0% 21E/20A Rev. Growth: 39.6%
21E EBITDA Margin: 20.9% 21E EBITDA Margin: 12.4% 21E EBITDA Margin: 19.0%
Notes:
Sources: Capital IQ. Market data as of 6/30/21. 7
Logos shown represent largest players in each sub sector by enterprise value. Operating statistics for each sector represent full list of companies shown in public comparable tables.SOFTWARE PUBLIC COMPANY LANDSCAPE
Subsector Top Players and Key Operating Stats
Technical Applications Vertical ERP & General Business
Combined Market Cap: $318Bn Combined Market Cap: $428Bn Combined Market Cap: $662Bn
21E/20A Rev. Growth: 12.8% 21E/20A Rev. Growth: 24.4% 21E/20A Rev. Growth: 18.4%
21E EBITDA Margin: 30.8% 21E EBITDA Margin: 14.2% 21E EBITDA Margin: 19.3%
Development & Operations Sales & Marketing SaaS
Combined Market Cap: $497Bn Combined Market Cap: $168Bn Combined Market Cap: $2,100Bn
21E/20A Rev. Growth: 26.8% 21E/20A Rev. Growth: 29.2% 21E/20A Rev. Growth: 29.0%
21E EBITDA Margin: 14.0% 21E EBITDA Margin: 12.2% 21E EBITDA Margin: 14.1%
Notes:
Sources: Capital IQ. Market data as of 6/30/21. 8
Logos shown represent largest players in each sub sector by enterprise value. Operating statistics for each sector represent full list of companies shown in public comparable tables.SOFTWARE STOCKS WINNERS & LOSERS
Top and Bottom 20 Stock Price Performers in Q2 2021
Top 20 Performers
101.3%
95.4%
80.1%
69.0% 70.8%
53.1% 53.4% 56.8%
44.3% 47.4% 47.6%
40.2% 40.4% 41.7% 42.2%
33.2% 34.4% 35.1% 35.5% 35.8%
Bottom 20 Performers
(10.5%) (11.1%) (11.2%) (11.6%)
(12.5%) (13.4%) (13.6%)
(13.8%) (14.3%)
(15.2%) (16.0%)
(16.4%) (16.9%)
(18.2%)
(19.6%) (19.6%)
(21.6%)
(26.7%)
(32.6%) (32.6%)
Notes:
Sources: Capital IQ as of 6/30/21.
9TRADING COMPARABLES
Valuation and Operational Metrics
EV / 2020A Revenue EV / 2021E Revenue
18.4x
17.4x 17.0x 17.2x
16.3x
15.1x 15.0x Median: 12.8x 14.7x
13.9x
11.7x Median: 11.3x
12.1x 11.6x 11.5x 11.2x 11.2x 10.4x
10.9x 10.6x 10.4x 10.0x
8.5x 8.4x
4.8x 4.5x
2020A / 2019A Revenue Growth 2021E / 2020A Revenue Growth
39.1% 39.6%
35.7%
30.7%
28.4% 29.2% 29.0%
26.2% 26.8%
Median: 19.4% 24.4% Median: 19.7%
19.5% 21.0%
19.2% 18.2% 16.2% 18.4% 18.4%
12.4% 15.9% 15.1%
12.1% 12.8%
6.3%
1.6%
Notes:
Sources: Capital IQ. Market data as of 6/30/21.
Figures represent mean values of respective comp groups. 10
List of companies in each sector can be found in the public comparable tables.TRADING COMPARABLES
Valuation and Operational Metrics
EV / 2020A EBITDA EV / 2021E EBITDA
33.6x 33.7x
27.0x 27.0x 26.2x 26.6x 26.2x 25.6x
24.7x 24.5x Median: 23.5x 24.0x 23.6x Median: 21.9x
22.5x 22.1x 20.2x
21.4x 20.2x
16.3x 18.2x 16.0x
15.8x 14.9x
13.6x 12.6x
2020A EBITDA Margin 2021E EBITDA Margin
31.7% 30.7% 30.9% 30.8%
Median: 18.7% Median: 17.8%
20.9% 20.9%
19.8% 19.4% 19.6% 19.3% 19.0%
18.7% 18.6% 17.6% 16.6%
15.9% 14.4% 14.2% 14.1% 14.0% 12.4% 12.2%
10.5%
9.0%
Notes:
Sources: Capital IQ. Market data as of 6/30/21.
Figures represent mean values of respective comp groups. 11
List of companies in each sector can be found in the public comparable tables.PUBLIC SAAS COMPANIES
Valuation Correlation to Growth %
60.0x
Low Growth Software(1) Medium Growth Software (2) High Growth Software(3)
50.0x
Enterprise Value / CY 2021E Revenue
40.0x
30.0x
R = 0.59
20.0x
10.0x
0.0x
0% 5% 10% 15% 20% 25% 30% 35% 40%
CY 2021E Revenue Growth %
Low Growth Medium Growth High Growth
Median Rev. Growth % 11.1% 22.2% 40.9%
Median EV / Rev. 5.8x 12.8x 25.6x
Notes:
Sources: Capital IQ as of 6/30/21.
1)
2)
Defined as companies with annual revenue growth 15% and 30%.PUBLIC SAAS COMPANIES
Valuation Correlation to Growth % & Free Cash Flow Margin %
60.0x
Low Performance Software(1) Medium Performance Software (2) High Performance Software(3)
Enterprise Value / CY 2021E Revenue
40.0x
R = 0.52
20.0x
0.0x
0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 55% 60%
CY 2021E Revenue Growth % + CY 2021E FCF Margin %
Low Performance Medium Performance High Performance
Median Growth % + FCF Margin % 15.4% 30.0% 48.0%
Median EV / Rev. 7.2x 12.0x 21.0x
Notes:
Sources: Capital IQ as of 6/30/21.
1)
2)
Defined as companies with revenue growth % + FCF margin % 20% and 40%.PUBLIC SAAS COMPANIES
Valuation Correlation to Returns on S&M Expense Efficiency
60.0x
Low Efficiency Software(1) Medium Efficiency Software (2) High Efficiency Software(3)
50.0x
Enterprise Value / CY 2021E Revenue
40.0x
30.0x
R = 0.51
20.0x
10.0x
0.0x
0.0x 0.2x 0.4x 0.6x 0.8x 1.0x 1.2x 1.4x 1.6x 1.8x 2.0x
CY 2021E Incremental Revenue / CY 2020A S&M Expense
Low Efficiency Medium Efficiency High Efficiency
Median Inc. Rev. / S&M Expense 0.4x 0.7x 1.6x
Median EV / Rev. 7.3x 18.4x 26.1x
Notes:
Sources: Capital IQ as of 6/30/21.
1)
2)
Defined as companies with S&M expense efficiency 0.6x and 1.0x.SOFTWARE M&A UPDATE
Q2 2021 Dashboard
Quarterly M&A Activity Select Q2 2021 M&A Transactions
($Bn) Number of Deals M&A Deal Value ($MM)
Ann. Enterprise
Acquirer Target EV/ LTM Rev.
Date Value
532
6/28 $2,000 5.9x
488
469
458
6/25 $2,220 NA
6/24 $2,144 58.2x
384 389
$96
359
349 6/24 $1,050 2.2x
$86
315
$76 6/3 $1,200 2.2x
6/1 $5,300 6.4x
$56
5/6 $2,500 NA
$39
5/2 $4,000 NA
$28
$22
$19 4/26 $12,300 11.3x
$5 4/23 $5,600 8.5x
Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 4/12 $19,700 13.6x
Notes:
Sources: Capital IQ and 451 Research.
15SOFTWARE FINANCINGS UPDATE
Q2 2021 Dashboard
Quarterly Financing Activity Select Q2 2021 Financing Transactions
($Bn) Number of Deals Financing Deal Value ($MM)
Post-
Deal Lead/Selected Amount Funding
Company Money
577 Date Investor Invested to Date
Valuation
6/22 $806 $940 $6,543
$55
6/22 $543 $583 $2,200
424
6/2 $1,000 $1,364 $11,000
$40
5/26 $775 $915 NA
284 5/20 $900 $992 $5,300
227 234
222 215 5/4 $550 $550 $2,000
211 $22
198
$18 $18
$17 $16 5/3 $601 $876 $4,004
$15 $14
4/28 $1,000 $1,100 $3,800
4/13 $1,000 $4,360 $28,700
Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 4/7 $642 $1,028 $1,200
Notes:
Sources: PitchBook.
16SOFTWARE CAPITAL MARKETS UPDATE
Select Recent Software IPO Pricings
($MM)
Market Cap @ IPO
Offer Date (1) Name Amount Raised Pre IPO Filing Range Offer Price Last Close Price % Change Current / Offer Price
Date
6/30/2021 $9,348 $1,225 31.00 - 32.00 $35.00 $42.50 21.4%
6/30/2021 $1,646 $273 25.00 - 28.00 $26.00 $28.00 7.7%
6/24/2021 $11,361 $828 29.00 - 33.00 $36.00 $47.50 31.9%
6/23/2021 $4,074 $266 18.00 - 20.00 $16.00 $20.59 28.7%
6/16/2021 $2,381 $287 29.00 - 32.00 $31.00 $29.26 (5.6%)
6/10/2021 $330 $215 10.00 - 12.00 $10.00 $8.40 (16.0%)
6/10/2021 $7,792 $574 125.00 - 140.00 $155.00 $223.59 44.3% Median: 22.9%
6/9/2021 $16,183 $1,227 20.00 - 24.00 $27.00 $28.07 4.0%
5/26/2021 $3,315 $210 19.00 - 21.00 $21.00 $35.50 69.0%
5/26/2021 $3,564 $251 22.00 - 24.00 $24.00 $36.74 53.1%
5/20/2021 $11,276 $634 60.00 - 65.00 $67.00 $94.95 41.7%
5/19/2021 $5,940 $2,030 49.00 - 51.00 $50.00 $59.41 18.8%
5/12/2021 $1,625 $176 19.00 - 21.00 $22.00 $19.70 (10.5%)
4/22/2021 $4,037 $152 16.00 - 18.00 $16.00 $31.27 95.4%
Notes:
Sources: Capital IQ and company filings. Market data as of 6/30/21. IPO pricings include public registrations only.
1) First Trading Day listed as Offer Date. 17SOFTWARE CAPITAL MARKETS UPDATE
Select Recent Software IPO Pricings (Cont’d.)
($MM)
Market Cap @ IPO
Offer Date (1) Name Amount Raised Pre IPO Filing Range Offer Price Last Close Price % Change Current / Offer Price
Date
4/21/2021 $35,822 $1,338 52.00 - 54.00 $56.00 $67.93 21.3%
4/21/2021 $5,594 $360 24.00 - 27.00 $27.00 $42.34 56.8%
4/15/2021 $23,339 $2,000 75.00 - 85.00 $80.00 $75.17 (6.0%)
4/14/2021 $3,575 $180 26.00 - 28.00 $30.00 $35.67 18.9%
4/14/2021 $65,393 $2,203 200.00 - 375.01.00 $250.00 $253.30 1.3%
4/1/2021 $727 $29 27.00 - 29.00 $28.00 $36.75 31.3%
3/25/2021 $1,512 $140 14.00 - 16.00 $14.00 $23.02 64.4% Median: 22.9%
3/24/2021 $4,475 $776 44.00 - 47.00 $47.00 $55.59 18.3%
3/18/2021 $13,994 $915 17.00 - 20.00 $21.00 $24.50 16.7%
3/17/2021 $4,935 $450 20.00 - 22.00 $25.00 $37.39 49.6%
2/3/2021 $3,150 $428 45.00 - 50.00 $50.00 $35.48 (29.0%)
2/3/2021 $8,211 $925 23.00 - 25.00 $25.00 $31.11 24.4%
1/28/2021 $22,877 $1,551 27.00 - 29.00 $30.00 $38.25 27.5%
12/16/2020 $2,135 $240 20.00 - 22.00 $20.00 $124.90 524.5%
MEDIAN: 22.9%
MEAN: 43.0%
Notes:
Sources: Capital IQ and company filings. Market data as of 6/30/21. IPO pricings include public registrations only.
1) First Trading Day listed as Offer Date. 18APPENDIX
19PUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
Platform
Microsoft Corporation $270.90 $2,040,304 $125,013 $81,260 $1,996,551 13.0x 11.3x 10.2x 27.7x 23.3x 19.8x 14% 15% 11% 67% 67% 67% 47% 49% 51%
Oracle Corporation $77.84 $217,329 $46,557 $87,027 $258,513 6.6x 6.3x 6.0x 13.1x 12.8x 12.7x (0%) 5% 4% 80% 80% 80% 50% 49% 47%
Cisco Systems $53.00 $223,353 $23,579 $12,538 $212,312 4.4x 4.1x 4.0x 11.8x 11.4x 11.4x (7%) 7% 3% 63% 63% 63% 37% 36% 35%
International Business Machines Corporation $146.59 $130,982 $7,950 $59,789 $182,946 2.5x 2.5x 2.4x 11.9x 9.6x 9.6x (4%) 3% 1% 49% 50% 49% 21% 26% 25%
SAP SE $140.91 $166,210 $13,926 $20,113 $172,397 5.2x 5.3x 5.1x 13.9x 15.5x 15.1x 8% (3%) 4% 73% 73% 71% 37% 34% 34%
Dell Technologies Inc. $99.67 $76,665 $14,244 $48,914 $116,434 1.2x 1.1x 1.1x 9.1x 8.8x 8.4x 2% 8% 2% 33% 32% 31% 14% 13% 13%
HP Inc. $30.19 $36,266 $3,438 $7,323 $40,151 0.7x 0.6x 0.6x 7.8x 6.8x 6.9x (2%) 10% (1%) 19% 19% 19% 9% 9% 9%
Mean 4.8x 4.5x 4.2x 13.6x 12.6x 12.0x 2% 6% 4% 55% 55% 54% 31% 31% 31%
Median 4.4x 4.1x 4.0x 11.9x 11.4x 11.4x (0%) 7% 3% 63% 63% 63% 37% 34% 34%
Infrastructure
Zoom Video Communications $387.03 $114,933 $4,690 $103 $110,346 41.6x 27.6x 23.1x NM NM NM 326% 51% 20% 69% 73% 75% 38% 39% 37%
Snowflake Inc. $241.80 $71,604 $3,930 $201 $67,874 NM NM 37.1x NM NM NM 124% 88% 64% 64% 68% 59% NM (14%) (9%)
RingCentral $290.58 $26,406 $463 $1,441 $27,383 25.2x 18.2x 14.7x NM NM NM 33% 39% 24% 76% 77% 78% 15% 14% 14%
Akamai Technologies $116.60 $19,005 $1,288 $2,814 $20,531 6.4x 6.0x 5.6x 14.7x 13.5x 12.4x 11% 7% 8% 64% 65% 65% 44% 44% 45%
Citrix Systems $117.27 $14,561 $498 $3,669 $17,732 5.5x 5.3x 4.8x 15.2x 15.6x 14.1x 8% 4% 9% 86% 84% 85% 36% 34% 34%
Five9 $183.39 $12,413 $643 $833 $12,602 29.0x 22.9x 19.5x NM NM NM 33% 27% 17% 64% 63% 61% 20% 16% 18%
Amdocs Limited $77.36 $9,875 $1,164 $1,012 $9,766 2.3x 2.2x 2.2x 11.5x 9.9x 9.8x 2% 4% 3% 34% 34% 34% 20% 23% 22%
Juniper Networks $27.35 $8,964 $1,293 $1,851 $9,521 2.1x 2.0x 2.0x 10.6x 10.0x 9.4x (0%) 5% 3% 59% 60% 59% 20% 20% 21%
Rackspace Technology $19.61 $4,073 $212 $4,190 $8,052 3.0x 2.7x 2.4x 10.6x 10.6x 9.8x 11% 12% 11% 38% 34% 38% 28% 25% 25%
Fastly $59.60 $6,894 $1,097 $1,022 $6,819 23.4x 17.8x 14.1x NM NM NM 45% 31% 26% 60% 61% 58% 1% (5%) 1%
Everbridge $136.08 $5,200 $735 $656 $5,121 18.9x 14.3x 11.4x NM NM NM 35% 32% 25% 72% 73% 70% 3% 2% 5%
Jamf Holding Corp. $33.57 $3,964 $196 $28 $3,796 14.1x 11.2x 9.3x NM NM NM 32% 26% 20% 81% 82% 79% 13% 10% 11%
Verint Systems Inc. $45.07 $2,930 $360 $859 $3,430 2.7x 4.0x 3.7x 10.1x 14.9x 13.2x (2%) (32%) 6% 70% 69% 68% 27% 27% 28%
Software Aktiengesellschaft $44.98 $3,328 $662 $367 $3,034 3.0x 3.1x 2.9x 12.9x 16.5x 13.3x 2% (5%) 8% 76% 77% 77% 23% 19% 22%
Extreme Networks $11.16 $1,407 $203 $402 $1,605 1.8x 1.5x 1.5x 22.4x 10.9x 9.7x (12%) 15% 5% 57% 57% 57% 8% 14% 15%
ON24 $35.48 $1,645 $392 $6 $1,259 8.0x 6.0x 5.0x NM NM NM 76% 33% 21% 79% 75% 75% 16% 2% 3%
Radware Ltd. $30.78 $1,402 $315 $28 $1,115 4.5x 4.1x 3.7x 33.1x 27.5x 22.3x (1%) 9% 9% 83% 83% 82% 13% 15% 17%
A10 Networks $11.26 $871 $161 $27 $737 3.3x 3.1x 2.9x 16.2x 13.4x 11.8x 6% 7% 7% 77% 79% 78% 20% 23% 24%
Limelight Networks $3.15 $396 $117 $134 $413 1.8x 1.9x 1.7x 16.9x 21.7x 12.8x 15% (4%) 9% 45% 39% 47% 11% 9% 13%
Mean 10.9x 8.5x 8.8x 15.8x 15.0x 12.6x 39% 18% 16% 66% 66% 66% 20% 17% 18%
Median 5.0x 4.7x 4.8x 14.7x 13.5x 12.4x 11% 12% 9% 69% 69% 68% 20% 16% 18%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsPUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
Security
CrowdStrike Holdings $251.31 $56,748 $1,685 $779 $55,847 NM 41.0x 30.1x NM NM NM 82% 56% 36% 75% 77% 72% 12% 13% 16%
Fortinet $238.19 $38,901 $2,937 $1,043 $37,007 14.3x 11.9x 10.3x 48.3x 41.5x 35.4x 20% 20% 16% 79% 79% 78% 30% 29% 29%
Okta $244.68 $37,431 $2,690 $1,970 $36,711 43.9x 30.0x 21.8x NM NM NM 43% 46% 38% 78% 77% 75% 5% (12%) (5%)
Palo Alto Networks $371.05 $36,137 $2,945 $3,508 $36,700 9.7x 8.0x 6.8x NM 34.0x 28.7x 21% 22% 18% 71% 71% 71% 1% 23% 24%
Cloudflare $105.84 $32,877 $1,035 $436 $32,277 NM NM 39.5x NM NM NM 50% 43% 33% 77% 78% 77% 4% 7% 11%
Zscaler $216.06 $29,597 $1,468 $957 $29,087 NM 37.5x 28.7x NM NM NM 49% 45% 31% 79% 79% 79% 14% 14% 16%
VeriSign $227.69 $25,642 $1,181 $1,791 $26,252 20.8x 19.8x 18.2x 28.6x 28.3x 25.6x 3% 5% 9% 86% 86% 85% 73% 70% 71%
Splunk Inc. $144.58 $23,699 $1,865 $2,555 $24,389 10.9x 9.6x 7.9x NM NM NM (5%) 14% 21% 79% 77% 79% NM 2% 4%
NortonLifeLock Inc. $27.22 $15,822 $951 $3,693 $18,564 7.3x 6.8x 6.3x 13.7x 12.9x 12.2x 2% 8% 7% 81% 83% 83% 53% 52% 52%
Citrix Systems $117.27 $14,561 $498 $3,669 $17,732 5.5x 5.3x 4.8x 15.2x 15.6x 14.1x 8% 4% 9% 86% 84% 85% 36% 34% 34%
McAfee Corp. $28.02 $4,632 $346 $4,080 $14,543 5.0x 7.2x 6.7x 13.8x 20.1x 16.7x 10% (30%) 7% 79% 79% 72% 36% 36% 40%
Check Point Software Technologies Ltd. $116.13 $15,422 $1,876 $31 $13,577 6.6x 6.3x 6.2x 12.8x 13.0x 12.6x 4% 4% 3% 90% 89% 89% 51% 49% 49%
F5 Networks $186.66 $11,128 $643 $748 $11,232 4.7x 4.3x 4.0x 13.5x 12.1x 11.1x 6% 8% 8% 83% 83% 83% 35% 36% 36%
SentinelOne $42.50 $11,119 $363 $46 $10,803 NM NA NA NM NA NA 100% NA NA 58% NM NM NM NA NA
Varonis Systems $57.62 $6,116 $824 $288 $5,580 19.1x 15.1x 12.3x NM NM NM 15% 27% 22% 86% 87% 87% 2% 5% 10%
Rapid7 $94.63 $5,217 $606 $938 $5,550 13.5x 11.0x 9.2x NM NM NM 26% 23% 19% 74% 74% 72% 4% 6% 8%
Trend Micro Incorporated $52.44 $7,309 $1,963 $0 $5,352 3.2x 3.3x 3.1x 8.9x 10.5x 10.0x 11% (2%) 4% 79% 80% 79% 36% 31% 31%
KnowBe4 $31.27 $5,306 $95 $12 $5,223 29.9x 22.6x 18.1x NA NM NM 45% 32% 25% 84% 85% 84% 0% 8% 11%
SailPoint Technologies Holdings $51.07 $4,715 $416 $421 $4,719 12.9x 11.5x 10.0x NM NM NM 27% 12% 16% 81% 78% 78% 22% (1%) 1%
CyberArk Software Ltd. $130.27 $5,179 $978 $507 $4,708 10.1x 9.6x 8.5x 44.0x NM NM 7% 6% 13% 85% 83% 84% 23% 8% 7%
FireEye $20.22 $4,785 $1,301 $1,041 $4,526 4.8x 4.4x 4.1x 26.0x 27.5x 25.6x 6% 9% 8% 70% 72% 68% 19% 16% 16%
Tenable Holdings $41.35 $4,366 $340 $57 $4,083 9.3x 7.8x 6.6x NM NM NM 24% 19% 18% 83% 83% 83% 8% 10% 12%
Qualys $100.69 $3,941 $357 $55 $3,639 10.0x 9.0x 8.1x 21.5x 21.9x 20.1x 13% 11% 11% 81% 80% 79% 47% 41% 40%
Mimecast Limited $53.05 $3,457 $293 $250 $3,414 7.1x 6.1x 5.4x 29.0x 23.5x 20.2x 19% 16% 13% 74% 74% 74% 24% 26% 27%
Telos Corporation $34.01 $2,270 $94 $17 $2,193 12.2x 7.6x 5.4x NM NM 30.2x 13% 61% 41% 33% 37% 35% 6% 12% 18%
Sumo Logic $20.65 $2,205 $291 $10 $1,925 9.5x 8.2x 6.8x NM NM NM 31% 16% 20% 75% 75% 73% (11%) NM (16%)
Ping Identity Holding Corp. $22.90 $1,880 $55 $59 $1,884 7.7x 7.0x 6.2x NM NM NM 0% 11% 13% 81% 80% 82% 12% 9% 10%
SecureWorks Corp. $18.53 $1,555 $181 $28 $1,403 2.5x 2.6x 2.5x 42.3x NM NM 1% (3%) 3% 60% 62% 57% 6% 0% 0%
OneSpan Inc. $25.54 $1,027 $115 $14 $926 4.3x 4.2x 3.8x NM NM NM (15%) 2% 10% 70% 71% 70% 7% (0%) 6%
F-Secure Oyj $4.77 $756 $53 $38 $741 2.8x 2.7x 2.5x 17.0x 17.0x 15.1x 10% 4% 7% 78% 78% 78% 16% 16% 16%
A10 Networks $11.26 $871 $161 $27 $737 3.3x 3.1x 2.9x 16.2x 13.4x 11.8x 6% 7% 7% 77% 79% 78% 20% 23% 24%
Absolute Software Corporation $14.47 $716 $133 $12 $595 5.3x 4.7x 4.2x 19.7x 20.5x 18.0x 10% 13% 13% 87% 87% 87% 27% 23% 23%
Zix Corporation $7.05 $391 $24 $226 $594 2.7x 2.4x 2.1x 11.7x 10.8x 9.5x 26% 14% 14% 54% 50% 57% 23% 22% 22%
Tufin Software Technologies Ltd. $9.12 $335 $87 $22 $270 2.7x 2.5x 2.2x NM NM NM (2%) 7% 13% 81% 81% 81% (17%) NM NM
Mean 10.0x 10.4x 9.6x 22.5x 20.2x 18.6x 20% 16% 16% 76% 77% 76% 19% 20% 20%
Median 7.5x 7.4x 6.6x 17.0x 18.6x 16.7x 12% 12% 13% 79% 79% 78% 17% 16% 16%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsPUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
Content & Storage Management
Adobe Inc. $585.64 $278,999 $5,768 $4,693 $277,924 21.6x 17.7x 15.5x 44.3x 35.5x 31.1x 15% 22% 15% 88% 90% 87% 49% 50% 50%
DocuSign $279.57 $54,470 $781 $947 $54,636 37.6x 26.7x 20.7x NM NM NM 49% 41% 29% 78% 80% 77% 16% 20% 21%
NetApp $81.82 $18,264 $4,604 $2,752 $16,412 2.9x 2.7x 2.6x 12.4x 11.0x 9.5x (0%) 8% 5% 65% 65% 65% 24% 25% 27%
Open Text Corporation $50.80 $13,804 $1,476 $3,864 $16,193 4.9x 4.8x 4.8x 12.7x 12.9x 12.0x 12% 2% 1% 74% 74% 74% 39% 37% 40%
Dropbox $30.31 $11,756 $1,916 $2,470 $12,310 6.4x 5.8x 5.3x 21.7x 16.6x 15.4x 15% 11% 9% 79% 80% 77% 30% 35% 34%
Nutanix $38.22 $8,086 $1,255 $1,177 $8,008 6.1x 5.5x 4.8x NM NM NM 5% 12% 13% 76% 76% 76% NM (14%) (1%)
Varonis Systems $57.62 $6,116 $824 $288 $5,580 19.1x 15.1x 12.3x NM NM NM 15% 27% 22% 86% 87% 87% 2% 5% 10%
Pure Storage $19.53 $5,532 $1,234 $911 $5,209 3.1x 2.7x 2.3x 44.9x 28.4x 20.8x 2% 16% 15% 70% 70% 69% 7% 9% 11%
Box $25.55 $3,953 $611 $689 $4,031 5.2x 4.7x 4.3x 20.7x 17.5x 15.8x 11% 10% 11% 73% 74% 72% 25% 27% 27%
Commvault Systems $78.17 $3,602 $397 $23 $3,228 4.6x 4.3x 4.0x NM 19.7x 16.0x 1% 9% 7% 84% 84% 84% 8% 22% 25%
Brightcove Inc. $14.35 $579 $35 $8 $552 2.8x 2.6x 2.3x 26.9x 20.1x 16.2x 7% 9% 11% 62% 65% 62% 10% 13% 14%
Mean 10.4x 8.4x 7.2x 26.2x 20.2x 17.1x 12% 15% 13% 76% 77% 75% 21% 21% 23%
Median 5.2x 4.8x 4.8x 21.7x 18.6x 15.9x 11% 11% 11% 76% 76% 76% 20% 22% 25%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsPUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
Business Intelligence & Analytics
Palantir Technologies Inc. $26.36 $49,559 $2,339 $453 $47,672 43.6x 32.2x 24.9x NM NM NM 47% 36% 29% 77% 80% 73% 19% 26% 27%
NICE Ltd. $244.29 $15,420 $1,561 $794 $14,677 8.9x 8.1x 7.3x 25.4x 24.0x 22.2x 5% 10% 11% 71% 72% 68% 35% 34% 33%
Elastic N.V. $145.76 $13,337 $403 $28 $12,962 23.4x 17.5x 13.7x NM NM NM 44% 34% 28% 72% 72% 72% (2%) (2%) 2%
MicroStrategy Incorporated $664.50 $6,477 $83 $1,754 $8,148 17.0x 16.2x 15.3x NM NM NM (1%) 5% 5% 81% 81% 80% 15% 18% 19%
Inovalon Holdings $34.08 $5,313 $129 $1,018 $6,202 9.3x 8.1x 7.2x 26.9x 22.9x 19.9x 4% 14% 12% 75% 75% 74% 35% 35% 36%
Alteryx $86.02 $5,774 $839 $803 $5,738 11.6x 10.0x 8.3x NM NM NM 19% 15% 21% 92% 92% 91% 17% 3% 12%
Teradata Corporation $49.97 $5,477 $538 $688 $5,627 3.1x 2.9x 2.9x 14.0x 12.1x 11.1x (3%) 4% 3% 58% 60% 55% 22% 24% 26%
Medallia $33.75 $5,352 $541 $626 $5,438 11.4x 9.6x 8.0x NM NM NM 19% 19% 20% 69% 69% 66% 8% 1% 7%
Domo $80.83 $2,561 $85 $105 $2,581 12.3x 10.3x 8.7x NM NM NM 21% 19% 18% 78% 80% 73% (17%) (11%) (6%)
Talend S.A. $65.60 $2,146 $173 $179 $2,152 7.5x 6.5x 5.6x NM NM NM 16% 15% 16% 80% 80% 78% (5%) (6%) 3%
Similarweb Ltd. $19.70 $1,463 $58 $30 $1,435 15.4x 11.4x 8.9x NA NM NM 32% 35% 29% 76% 78% 76% 0% NM NM
Karooooo Ltd. $36.75 $1,137 $40 $9 $1,108 7.8x 6.2x 5.2x NA 13.6x 11.5x NA 27% 18% 70% 70% 70% 0% 45% 46%
Veritone $19.71 $644 $127 $7 $524 9.1x 6.5x 5.1x NM NM NM 16% 40% 27% 71% 74% 73% NM (19%) (11%)
Mean 13.9x 11.2x 9.3x 22.1x 18.2x 16.2x 18% 21% 18% 75% 76% 73% 10% 12% 16%
Median 11.4x 9.6x 8.0x 25.4x 18.3x 15.7x 17% 19% 18% 75% 75% 73% 11% 11% 15%
Technical Applications
Autodesk $291.90 $64,222 $923 $2,091 $65,390 17.9x 15.0x 12.6x NM 45.1x 32.8x 17% 19% 19% 92% 92% 92% 32% 33% 39%
Dassault Systèmes SE $48.49 $63,494 $3,186 $4,925 $65,289 12.0x 11.5x 10.6x 34.9x 32.6x 29.6x 21% 4% 9% 83% 84% 84% 34% 35% 36%
Synopsys $275.79 $42,079 $1,458 $692 $41,317 10.8x 9.9x 9.1x 33.0x 30.8x 25.9x 13% 9% 9% 80% 80% 80% 33% 32% 35%
Cadence Design Systems $136.82 $38,072 $743 $347 $37,676 14.0x 12.8x 12.0x 34.6x 33.1x 30.0x 15% 10% 7% 90% 90% 89% 41% 39% 40%
ANSYS $347.06 $30,247 $988 $931 $30,190 18.0x 16.2x 14.7x 39.9x 37.9x 32.9x 11% 11% 11% 90% 89% 90% 45% 43% 45%
Unity Software Inc. $109.83 $30,688 $1,647 $135 $29,177 37.8x 28.8x 22.7x NM NM NM 43% 31% 27% 79% 79% 78% (3%) (5%) 1%
Bentley Systems $64.78 $17,926 $570 $717 $18,073 22.5x 19.7x 17.8x NM NM NM 9% 14% 11% 81% 79% 80% 33% 32% 33%
PTC Inc. $141.26 $16,507 $326 $1,715 $17,896 11.7x 10.2x 9.1x 35.2x 31.5x 25.7x 20% 15% 12% 76% 76% 76% 33% 32% 35%
Aspen Technology $137.54 $9,355 $317 $333 $9,371 13.8x 13.2x 13.1x 24.2x 24.8x 24.4x 12% 4% 1% 91% 91% 91% 57% 53% 54%
Altair Engineering Inc. $68.97 $5,183 $243 $227 $5,166 11.2x 10.1x 9.2x NM NM NM 3% 10% 10% 74% 76% 74% 12% 13% 15%
Mean 17.0x 14.7x 13.1x 33.6x 33.7x 28.8x 16% 13% 12% 83% 83% 83% 32% 31% 33%
Median 13.9x 13.0x 12.3x 34.7x 32.6x 29.6x 14% 10% 10% 82% 82% 82% 33% 33% 35%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsPUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
Financial Applications
Intuit Inc. $490.17 $133,943 $4,116 $2,472 $132,299 17.1x 12.5x 11.6x 45.7x 35.0x 31.0x 8% 37% 7% 83% 83% 83% 37% 36% 38%
Fidelity National Information Services $141.67 $87,853 $1,039 $19,439 $106,442 8.5x 7.8x 7.2x 20.2x 17.3x 15.5x 21% 9% 8% 34% 36% 35% 42% 45% 46%
Fiserv $106.89 $71,271 $831 $21,204 $92,638 6.2x 5.8x 5.4x 17.0x 14.6x 13.2x 46% 7% 8% 44% 50% 48% 37% 40% 41%
Coinbase Global $253.30 $52,854 $1,983 $662 $51,533 45.2x 8.0x 8.8x NA 16.5x 22.3x 136% 462% (9%) 89% 89% 89% 0% 49% 40%
MSCI Inc. $533.08 $43,938 $1,747 $4,038 $46,228 27.3x 23.4x 21.2x 47.6x 39.8x 35.7x 9% 17% 10% 83% 83% 82% 57% 59% 59%
SS&C Technologies Holdings $72.06 $18,424 $254 $6,828 $24,999 5.4x 5.1x 4.9x 13.5x 12.6x 11.9x 1% 5% 4% 57% 56% 49% 40% 40% 41%
Coupa Software Incorporated $262.11 $19,272 $600 $1,572 $20,246 37.4x 29.5x 23.7x NM NM NM 39% 27% 25% 71% 67% 65% 23% 17% 19%
Bill.com Holdings $183.18 $17,254 $1,736 $958 $16,475 NM NM 28.9x NM NM NM 57% 81% 84% 83% 83% 83% (5%) (1%) 2%
Fair Isaac Corporation $502.68 $14,466 $198 $1,024 $15,292 11.7x 11.3x 10.2x 30.7x 27.8x 24.7x 9% 4% 10% 71% 71% 71% 38% 40% 41%
Xero Limited $102.79 $15,233 $776 $665 $15,121 20.2x 16.1x 13.1x NM NM NM 69% 25% 22% 85% 52% 54% 8% 16% 22%
Marqeta $28.07 $15,075 $388 $18 $14,705 NM 32.1x 20.4x NA NM NM 103% 58% 58% 44% 46% 44% 0% 2% 3%
Avalara $161.80 $13,910 $642 $65 $13,333 26.6x 20.4x 16.6x NM NM NM 31% 30% 23% 73% 73% 72% 3% 1% 6%
Temenos AG $160.73 $11,691 $66 $930 $12,555 14.1x 12.7x 11.6x 26.7x 28.1x 25.5x (9%) 11% 10% 82% 84% 75% 53% 45% 45%
Jack Henry & Associates $163.51 $12,130 $70 $264 $12,324 7.2x 6.8x 6.3x 22.2x 20.9x 19.4x 5% 6% 7% 41% 41% 41% 32% 32% 33%
Upstart Holdings $124.90 $9,605 $257 $61 $9,409 41.2x 15.7x 12.0x NM NM NM 43% 163% 30% 84% 86% 85% 14% 11% 11%
BlackLine $111.27 $6,459 $1,157 $1,078 $6,397 18.2x 15.3x 12.6x NM NM NM 22% 19% 21% 82% 80% 80% 16% 12% 15%
Q2 Holdings $102.58 $5,776 $529 $608 $5,855 14.5x 11.8x 9.8x NM NM NM 28% 23% 21% 54% 52% 50% 6% 7% 9%
Shift4 Payments $93.72 $5,227 $845 $1,116 $5,697 7.4x 4.4x 3.3x NM 34.0x 24.6x 5% 67% 35% 55% 64% 38% 11% 13% 13%
nCino $59.92 $5,718 $387 $28 $5,363 26.3x 20.7x 16.8x NM NM NM 48% 27% 23% 60% 61% 56% (5%) (6%) (1%)
SimCorp A/S $125.52 $4,972 $61 $50 $4,961 8.9x 8.5x 7.7x 28.9x 28.4x 25.3x 9% 5% 9% 63% 63% 63% 31% 30% 30%
Envestnet $75.86 $4,128 $372 $968 $4,724 4.7x 4.1x 3.7x 19.4x 19.6x 17.6x 11% 15% 11% 69% 66% 44% 24% 21% 21%
Paymentus Holdings $35.50 $4,166 $49 $9 $4,126 13.7x 11.1x 9.0x NA NM NM 28% 24% 23% 31% 30% 31% 0% 7% 6%
Flywire Corporation $36.74 $3,731 $146 $24 $3,609 27.4x 23.6x 18.2x NA NM NM 39% 16% 30% 65% 70% 65% 0% (3%) (7%)
Vertex $21.94 $3,238 $278 $32 $2,992 8.0x 7.3x 6.5x 38.2x 43.9x 37.5x 17% 10% 12% 71% 70% 66% 21% 17% 17%
Alkami Technology $35.67 $3,065 $162 $25 $2,928 26.1x 20.1x 15.9x NA NM NM 52% 30% 26% 50% 55% 50% 0% (17%) (8%)
Asseco Poland S.A. $20.25 $1,680 $689 $740 $2,507 0.8x 0.7x 0.7x 4.9x 4.7x 4.8x 16% 9% 3% 22% 22% 22% 16% 15% 14%
Iress Limited $9.68 $1,850 $50 $211 $2,011 4.8x 4.4x 4.2x 20.8x 19.0x 17.6x 17% 8% 6% 21% 21% 27% 23% 23% 24%
Zuora $17.25 $2,110 $197 $69 $1,982 6.5x 5.9x 5.1x NM NM NM 11% 11% 14% 62% 65% 57% 1% 1% 4%
Bottomline Technologies (de) $37.08 $1,683 $138 $168 $1,712 3.8x 3.5x 3.1x 17.4x 17.0x 15.1x 4% 11% 11% 58% 58% 58% 22% 20% 21%
Ebix $33.90 $1,049 $122 $714 $1,687 2.7x 2.0x 2.9x 11.8x NA NA 8% 32% (29%) 45% 41% 49% 23% NA NA
Model N $34.27 $1,219 $148 $134 $1,205 7.3x 6.1x 5.5x NM NM 44.3x 14% 19% 12% 56% 56% 56% 15% 6% 12%
Basware Oyj $47.13 $681 $48 $102 $735 4.0x 4.0x 3.5x 29.5x 29.3x 21.1x 11% (0%) 12% 56% 58% 55% 13% 14% 17%
Mean 15.1x 11.6x 10.3x 24.7x 24.0x 22.6x 28% 40% 17% 61% 60% 58% 19% 19% 21%
Median 10.3x 8.5x 8.9x 21.5x 20.9x 21.7x 17% 18% 12% 61% 62% 56% 16% 16% 17%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsPUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
Vertical Applications
Danaher Corporation $268.36 $191,416 $6,330 $21,255 $206,352 9.3x 7.4x 7.1x 34.4x 22.2x 21.7x 24% 25% 5% 56% 60% 57% 27% 33% 33%
Roper Technologies $470.20 $49,483 $331 $9,074 $58,226 10.5x 9.1x 8.7x 29.4x 25.6x 23.9x 3% 16% 4% 64% 64% 64% 36% 36% 37%
Veeva Systems Inc. $310.95 $47,550 $2,150 $60 $45,460 31.0x 24.9x 21.0x NM NM NM 33% 24% 19% 74% 74% 73% 42% 40% 40%
Amadeus IT Group $70.33 $31,669 $3,331 $7,082 $35,420 13.3x 9.6x 6.6x NM 35.6x 18.0x (57%) 38% 46% 82% 77% 63% 10% 27% 37%
Cerner Corporation $78.16 $23,551 $1,474 $1,867 $23,944 4.3x 4.1x 3.9x 13.8x 12.8x 12.0x (3%) 5% 6% 83% 83% 83% 32% 32% 33%
Tyler Technologies $452.37 $18,429 $1,310 $614 $17,733 15.9x 11.6x 9.8x NM 41.8x 35.4x 3% 36% 19% 52% 50% 49% 29% 28% 28%
Procore Technologies $94.95 $12,256 $414 $93 $11,935 29.8x 24.4x 19.9x NA NM NM 38% 22% 23% 82% 82% 82% 0% (6%) (4%)
Guidewire Software $112.72 $9,373 $1,101 $471 $8,743 11.5x 11.7x 10.8x NM NM NM 9% (2%) 8% 53% 53% 53% 14% 0% 4%
Sabre Corporation $12.48 $3,987 $1,285 $4,880 $7,589 5.7x 4.1x 2.6x NM NM 18.2x (66%) 40% 57% 63% 57% 58% NM (7%) 14%
Lemonade $109.41 $6,719 $1,174 $0 $5,544 NM 46.6x 29.1x NM NM NM 17% 51% 60% 30% 33% 34% NM NM NM
Duck Creek Technologies $43.51 $5,731 $372 $21 $5,380 24.0x 20.5x 17.5x NA NM NM 24% 17% 17% 57% 57% 57% 0% 2% 4%
Olo Inc. $37.39 $5,516 $587 $0 $4,929 NM 34.9x 27.4x NM NM NM 94% 44% 27% 74% 80% 82% 17% 11% 10%
AppFolio $141.20 $4,872 $148 $41 $4,765 15.4x 13.6x 11.4x NM NM NM 21% 13% 19% 62% 60% 61% 15% 13% 15%
Blackbaud $76.57 $3,640 $28 $575 $4,188 4.6x 4.6x 4.5x 17.0x 18.3x 17.4x 1% (1%) 2% 59% 59% 56% 27% 25% 26%
2U $41.67 $3,100 $487 $371 $2,985 3.9x 3.2x 2.7x NM 48.7x 34.0x 35% 22% 15% 71% 71% 72% 2% 6% 8%
Allscripts Healthcare Solutions $18.51 $2,613 $513 $280 $2,379 1.6x 1.6x 1.5x 7.6x 9.3x 8.7x (8%) 1% 2% 41% 41% 44% 21% 17% 18%
PROS Holdings $45.57 $2,017 $324 $336 $2,028 8.0x 8.0x 7.2x NM NM NM 1% (0%) 12% 61% 60% 60% (11%) (14%) (6%)
Intapp $28.00 $1,646 $71 $275 $1,850 9.5x NA NA NA NA NA 21% NA NA 65% NM NM NA NA NA
Root $10.82 $2,687 $1,109 $208 $1,786 5.2x 6.3x 3.9x NM NM NM 19% (18%) 59% 4% 23% 14% NM NM NM
HealthStream $27.94 $881 $56 $28 $853 3.5x 3.4x 3.2x 18.6x 19.8x 18.7x (4%) 3% 7% 63% 65% 62% 19% 17% 17%
Castlight Health $2.63 $415 $57 $13 $372 2.5x 2.7x 2.6x 29.0x NM 28.4x 2% (6%) 4% 67% 66% 64% 9% 5% 9%
Boxlight Corporation $2.41 $137 $10 $21 $147 2.7x 1.0x 0.9x NM 21.6x 14.8x 66% 181% 10% 21% 27% 25% (2%) 4% 6%
Mean 10.6x 12.1x 9.6x 21.4x 25.6x 20.9x 12% 24% 20% 58% 59% 58% 16% 14% 17%
Median 8.6x 8.0x 7.1x 18.6x 21.9x 18.5x 13% 17% 15% 63% 60% 60% 16% 13% 15%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsPUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
ERP & General Business
salesforce.com $244.27 $226,194 $15,023 $6,283 $217,454 10.2x 8.4x 7.0x 32.9x 29.6x 24.9x 24% 22% 19% 78% 79% 76% 31% 28% 28%
Shopify Inc. $1,460.98 $182,260 $7,872 $1,079 $175,467 NM 39.6x 29.7x NM NM NM 86% 51% 33% 53% 54% 54% 17% 11% 10%
Workday $238.74 $58,998 $2,995 $2,160 $58,163 13.5x 11.6x 9.8x NM 45.1x 38.4x 19% 17% 18% 77% 76% 73% 27% 26% 25%
Constellation Software Inc. $1,515.35 $32,113 $942 $1,245 $32,431 8.2x 6.5x 5.6x 26.3x 21.6x 19.4x 14% 26% 15% 37% 37% 37% 31% 30% 29%
Paycom Software $363.47 $21,006 $215 $47 $20,838 24.8x 20.5x 16.4x NM NM 41.1x 14% 21% 25% 86% 86% 87% 39% 39% 40%
Zendesk $144.34 $17,126 $954 $1,183 $17,355 16.9x 13.2x 10.5x NM NM NM 26% 28% 25% 78% 81% 75% 11% 11% 12%
Ceridian HCM Holding Inc. $95.92 $14,315 $340 $1,179 $15,155 18.0x 15.1x 12.9x NM NM NM 2% 19% 17% 42% 41% 45% 19% 15% 18%
Paylocity Holding Corporation $190.80 $10,395 $182 $76 $10,289 17.8x 14.8x 12.1x NM NM 44.2x 16% 21% 22% 67% 67% 67% 29% 26% 27%
The Sage Group plc $9.45 $10,032 $955 $1,112 $10,189 3.8x 4.0x 3.8x 15.0x 17.7x 16.3x 4% (5%) 6% 92% 93% 93% 25% 23% 23%
monday.com Ltd. $223.59 $9,866 $134 $21 $9,753 NM 34.6x 21.9x NA NM NM 106% 75% 58% 85% 85% 85% 0% NM (14%)
Manhattan Associates $144.84 $9,214 $197 $32 $9,050 15.4x 14.3x 13.1x NM NM NM (5%) 8% 9% 55% 54% 55% 27% 23% 23%
Smartsheet Inc. $72.32 $9,048 $440 $86 $8,695 22.6x 16.9x 13.1x NM NM NM 42% 33% 29% 80% 80% 80% (6%) (6%) (0%)
J2 Global $137.55 $6,209 $373 $1,698 $7,535 5.1x 4.4x 4.2x 12.2x 11.1x 10.4x 9% 14% 7% 84% 84% 84% 41% 40% 40%
Anaplan $53.30 $7,714 $328 $56 $7,442 16.6x 13.3x 10.6x NM NM NM 29% 25% 26% 77% 77% 75% (3%) (4%) (1%)
The Descartes Systems Group Inc $69.20 $5,855 $138 $13 $5,730 16.4x 14.1x 12.6x 40.4x 34.0x 29.9x 7% 17% 12% 74% 75% 74% 41% 41% 42%
C3.ai $62.53 $6,467 $1,093 $6 $5,379 31.2x 23.8x 17.6x NA NM NM NA 31% 35% 76% 76% 76% 0% NM NM
Workiva Inc. $111.33 $5,566 $541 $332 $5,357 15.2x 12.8x 11.0x NM NM NM 18% 19% 16% 75% 76% 74% 3% (0%) 1%
Cornerstone OnDemand $51.58 $3,415 $129 $1,162 $4,448 6.0x 5.2x 4.8x 15.9x 13.1x 12.1x 29% 16% 8% 74% 76% 73% 38% 40% 40%
Datto Holding Corp. $27.84 $4,490 $148 $44 $4,386 8.5x 7.3x 6.4x 29.1x 32.3x 28.3x 13% 15% 15% 73% 74% 72% 29% 23% 22%
BigCommerce Holdings $64.92 $4,564 $208 $15 $4,371 28.7x 22.1x 18.0x NM NM NM 36% 30% 23% 78% 78% 77% (16%) (15%) (9%)
SPS Commerce $99.85 $3,581 $208 $22 $3,395 10.9x 9.1x 8.2x 39.0x 32.7x 28.0x 12% 19% 11% 69% 68% 68% 28% 28% 29%
Enghouse Systems Limited $44.55 $2,472 $138 $27 $2,362 5.9x 5.9x 5.2x 16.2x 17.3x 15.3x 29% (0%) 15% 70% 70% 70% 36% 34% 34%
WalkMe Ltd. $29.26 $2,418 $112 $0 $2,326 15.7x 12.5x 9.8x NM NM NM 41% 26% 27% 72% 75% 78% NM NM (16%)
Technology One Limited $6.98 $2,245 $76 $22 $2,191 9.1x 9.2x 8.3x 26.8x 23.8x 20.2x 18% (1%) 11% 44% 44% 44% 34% 39% 41%
QAD Inc. $87.02 $1,828 $153 $36 $1,711 5.6x 5.1x 4.8x NM 48.3x 38.8x (1%) 8% 8% 58% 60% 57% 10% 11% 12%
Upland Software $41.17 $1,239 $187 $548 $1,600 5.5x 5.2x 4.9x 16.0x 16.3x 14.3x 31% 5% 6% 67% 67% 67% 34% 32% 35%
Opera Limited $10.25 $1,180 $143 $9 $1,046 6.3x 4.4x 3.7x 41.5x 49.4x 22.3x (7%) 44% 20% 92% 94% 94% 15% 9% 17%
American Software $21.96 $730 $105 $2 $627 5.6x 5.4x 5.0x NM 45.7x 30.0x (0%) 4% 8% 54% 54% 54% 5% 12% 17%
Benefitfocus $14.10 $468 $189 $272 $551 2.1x 2.1x 2.1x 12.5x 11.6x 11.4x (9%) (4%) 3% 52% 55% 52% 16% 18% 18%
Synchronoss Technologies $3.59 $307 $30 $61 $351 1.2x 1.3x 1.2x 12.6x 10.6x 7.7x (6%) (4%) 5% 58% 59% 56% 10% 12% 16%
ServiceSource International $1.41 $137 $34 $50 $153 0.8x 0.8x NA NM NM NA (10%) (3%) NA 30% 28% NM (5%) (6%) NA
Park City Group $5.51 $107 $23 $7 $91 4.4x 3.9x 3.5x 30.9x 18.6x 13.6x 8% 13% 12% 66% 66% 66% 14% 21% 25%
Mean 11.7x 11.5x 9.6x 24.5x 26.6x 23.3x 19% 18% 18% 68% 68% 69% 19% 19% 20%
Median 9.7x 9.2x 8.3x 26.3x 22.7x 21.3x 14% 18% 15% 73% 74% 73% 19% 23% 23%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsPUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
Development & Operations Management
ServiceNow $549.55 $108,508 $3,456 $2,108 $107,160 23.7x 18.7x 15.0x NM NM 47.1x 31% 27% 25% 82% 81% 79% 32% 31% 32%
VMware $159.97 $67,016 $5,714 $6,048 $67,350 5.7x 5.2x 4.8x 14.0x 14.7x 13.5x 9% 9% 8% 85% 85% 84% 41% 36% 36%
Atlassian Corporation Plc $256.86 $64,519 $1,564 $787 $63,742 38.0x 28.8x 24.8x NM NM NM 28% 32% 16% 87% 87% 87% 27% 25% 26%
Twilio Inc. $394.16 $67,500 $5,707 $1,508 $63,301 35.9x 24.9x 19.0x NM NM NM 55% 45% 31% 55% 55% 54% 11% 9% 10%
UiPath Inc. $67.93 $34,565 $1,880 $19 $32,705 NM 38.1x 28.7x NA NM NM 81% 41% 33% 85% 88% 85% 0% (2%) (2%)
Datadog $104.08 $32,097 $1,548 $796 $31,345 NM 35.3x 26.3x NM NM NM 66% 47% 34% 79% 78% 77% 13% 8% 11%
MongoDB $361.52 $23,369 $935 $1,302 $23,736 40.2x 30.2x 23.3x NM NM NM 40% 33% 30% 72% 72% 71% (6%) (7%) (3%)
Dynatrace $58.42 $16,604 $325 $440 $16,719 25.4x 19.7x 15.8x NM NM NM 29% 29% 25% 81% 81% 81% 31% 26% 26%
Tuya Inc. $24.50 $13,714 $1,223 $11 $12,502 NM 37.0x 22.9x NM NM NM 70% 88% 61% 34% 42% 46% NM NM NM
Confluent $47.50 $11,987 $280 $48 $11,756 49.7x 36.6x 27.3x NM NM NM 58% 36% 34% 68% 68% 67% NM NM NM
Asana $62.03 $11,205 $386 $613 $11,432 NM 33.8x 26.2x NM NM NM 59% 49% 29% 87% 89% 86% NM NM NM
Appian Corporation $137.75 $9,759 $233 $58 $9,585 31.5x 27.0x 22.8x NM NM NM 17% 16% 18% 70% 73% 68% (6%) (10%) (7%)
SolarWinds Corporation $16.89 $5,341 $374 $2,029 $6,996 6.9x 6.6x 6.1x 14.3x 15.3x 13.6x 9% 4% 9% 91% 91% 91% 48% 43% 45%
Micro Focus International plc $7.55 $2,535 $698 $4,874 $6,710 2.3x 2.3x 2.4x 5.7x 6.4x 6.5x (9%) (3%) (4%) 76% 76% 76% 40% 36% 37%
DigitalOcean Holdings $55.59 $5,924 $560 $0 $5,364 16.8x 13.1x 10.3x NM 42.4x 31.7x 25% 28% 28% 59% 75% 76% 15% 31% 32%
New Relic $66.97 $4,315 $816 $517 $4,020 6.1x 5.8x 5.3x 48.3x NM NM 14% 7% 9% 80% 80% 80% 13% 1% 6%
JFrog Ltd. $45.52 $4,345 $606 $21 $3,760 24.9x 18.6x 14.3x NM NM NM 44% 34% 31% 82% 82% 82% 11% 5% 6%
Bandwidth Inc. $137.92 $3,461 $330 $486 $3,618 12.1x 7.6x 6.4x NM NM NM 51% 59% 19% 49% 50% 51% 9% 9% 8%
PagerDuty $42.58 $3,561 $557 $310 $3,315 15.5x 12.3x 9.9x NM NM NM 28% 27% 24% 87% 85% 85% (7%) (9%) (1%)
Progress Software Corporation $46.25 $2,024 $363 $604 $2,265 5.1x 4.2x 4.2x 14.8x NA NA 7% 21% 1% 88% 88% 88% 35% 0% NA
NetScout Systems $28.54 $2,105 $476 $424 $2,052 2.4x 2.4x 2.3x 14.3x NA NA (6%) (0%) 4% 73% 73% 73% 17% NA NA
Axway Software SA $33.55 $723 $20 $95 $798 2.2x 2.2x 2.1x 15.4x 14.1x 12.2x 8% 0% 6% 71% 71% 39% 14% 16% 17%
Magic Software Enterprises Ltd. $16.23 $796 $99 $47 $777 2.1x 1.8x 1.7x 14.0x 13.0x NA 14% 17% 8% 31% 29% 31% 15% 14% NA
Comarch S.A. $66.13 $538 $147 $69 $464 1.1x 1.1x 1.1x 6.4x 6.4x 6.8x 8% (2%) 8% 28% 28% 28% 18% 18% 16%
Mean 17.4x 17.2x 13.5x 16.3x 16.0x 18.8x 31% 27% 20% 71% 72% 70% 18% 14% 16%
Median 13.8x 15.9x 12.3x 14.3x 14.1x 13.5x 28% 27% 22% 77% 77% 77% 15% 11% 13%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsPUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
Sales & Marketing Applications
AppLovin Corporation $75.17 $27,412 $766 $2,252 $28,898 19.9x 10.8x 8.9x NA 41.8x 31.1x 46% 84% 21% 74% 72% 74% 0% 26% 29%
HubSpot $582.72 $27,228 $1,180 $741 $26,789 30.3x 21.5x 16.9x NM NM NM 31% 41% 27% 82% 82% 81% 12% 12% 13%
Qualtrics International Inc. $38.25 $19,668 $635 $742 $19,776 25.9x 20.1x 16.7x NM NM NM 29% 29% 20% 76% 77% 74% (1%) 1% 3%
Wix.com Ltd. $290.28 $16,422 $1,124 $1,011 $16,308 16.5x 12.6x 10.1x NM NM NM 30% 30% 25% 70% 62% 70% 9% 6% 12%
Pegasystems Inc. $139.19 $11,312 $442 $639 $11,508 11.3x 9.3x 7.7x NM NM NM 12% 22% 21% 71% 73% 69% (2%) 7% 10%
ZoomInfo Technologies Inc. $52.17 $9,675 $354 $787 $10,501 22.1x 15.6x 12.1x 44.7x 33.9x 26.1x 62% 42% 29% 88% 88% 85% 49% 46% 46%
TELUS International (Cda) Inc. $31.11 $8,260 $117 $1,236 $9,379 5.9x 4.3x 3.7x 28.1x 17.7x 14.7x 55% 37% 17% 26% 41% 26% 21% 24% 25%
Squarespace $59.41 $8,084 $215 $536 $8,406 13.5x 10.9x 8.9x NA NM NM 28% 25% 22% 84% 84% 84% 0% 12% 15%
DoubleVerify Holdings $42.34 $6,656 $50 $28 $6,634 27.2x 20.4x 15.6x NA NM 48.9x 34% 33% 31% 84% 84% 84% 0% 32% 32%
Sprinklr $20.59 $5,108 $275 $81 $4,914 12.7x 10.8x 8.9x NM NM NM 19% 18% 21% 66% 69% 70% (7%) (19%) (14%)
Sprout Social $89.42 $4,792 $168 $26 $4,650 35.0x 26.3x 20.8x NM NM NM 29% 33% 26% 74% 76% 74% (13%) (8%) (3%)
LivePerson $63.24 $4,361 $668 $567 $4,260 11.6x 9.1x 7.4x NM NM NM 26% 27% 23% 72% 71% 72% 10% 8% 11%
Cardlytics $126.93 $4,173 $614 $191 $3,750 20.1x 13.4x 10.0x NM NM NM (11%) 50% 34% 34% 39% 36% (4%) (2%) 4%
Momentive Global Inc. $21.07 $3,069 $247 $296 $3,118 8.3x 7.0x 5.9x NM NM 46.0x 22% 18% 20% 80% 82% 77% 12% 11% 13%
SEMrush Holdings $23.02 $3,118 $172 $0 $2,947 23.6x 16.7x 13.2x NM NM NM 36% 41% 27% 77% 77% 78% (4%) (4%) (1%)
Thryv Holdings $35.77 $1,205 $30 $775 $1,950 1.8x 1.9x 2.2x 5.2x 5.5x 7.2x (22%) (5%) (16%) 67% 65% 66% 34% 33% 31%
PubMatic $39.07 $1,929 $110 $0 $1,819 12.2x 9.2x 7.6x 36.1x 31.7x 25.6x 31% 33% 21% 70% 70% 70% 34% 29% 30%
Zeta Global Holdings Corp. $8.40 $1,602 $52 $197 $1,747 4.7x 4.2x 3.6x NM 32.7x 24.6x 20% 14% 16% 62% 61% 61% 5% 13% 15%
MediaAlpha $42.10 $1,626 $13 $183 $1,738 3.0x 2.5x 1.9x 29.9x 26.2x 18.4x 43% 20% 30% 15% 15% 15% 10% 9% 10%
Yext $14.29 $1,804 $272 $135 $1,667 4.7x 4.3x 3.7x NM NM NM 19% 9% 15% 77% 77% 76% (3%) (2%) 3%
ChannelAdvisor Corporation $24.51 $729 $82 $10 $656 4.5x 4.1x 3.8x 18.1x 19.7x 14.9x 12% 10% 8% 80% 79% 79% 25% 21% 25%
Mean 15.0x 11.2x 9.0x 27.0x 26.2x 25.8x 26% 29% 21% 68% 69% 68% 9% 12% 15%
Median 12.7x 10.8x 8.9x 29.0x 29.0x 25.1x 29% 29% 21% 74% 73% 74% 5% 11% 13%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsPUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
SaaS
Adobe Inc. $585.64 $278,999 $5,768 $4,693 $277,924 21.6x 17.7x 15.5x 44.3x 35.5x 31.1x 15% 22% 15% 88% 90% 87% 49% 50% 50%
salesforce.com $244.27 $226,194 $15,023 $6,283 $217,454 10.2x 8.4x 7.0x 32.9x 29.6x 24.9x 24% 22% 19% 78% 79% 76% 31% 28% 28%
Shopify Inc. $1,460.98 $182,260 $7,872 $1,079 $175,467 NM 39.6x 29.7x NM NM NM 86% 51% 33% 53% 54% 54% 17% 11% 10%
Zoom Video Communications $387.03 $114,933 $4,690 $103 $110,346 41.6x 27.6x 23.1x NM NM NM 326% 51% 20% 69% 73% 75% 38% 39% 37%
ServiceNow $549.55 $108,508 $3,456 $2,108 $107,160 23.7x 18.7x 15.0x NM NM 47.1x 31% 27% 25% 82% 81% 79% 32% 31% 32%
Snowflake Inc. $241.80 $71,604 $3,930 $201 $67,874 NM NM 37.1x NM NM NM 124% 88% 64% 64% 68% 59% NM (14%) (9%)
Atlassian Corporation Plc $256.86 $64,519 $1,564 $787 $63,742 38.0x 28.8x 24.8x NM NM NM 28% 32% 16% 87% 87% 87% 27% 25% 26%
Twilio Inc. $394.16 $67,500 $5,707 $1,508 $63,301 35.9x 24.9x 19.0x NM NM NM 55% 45% 31% 55% 55% 54% 11% 9% 10%
Workday $238.74 $58,998 $2,995 $2,160 $58,163 13.5x 11.6x 9.8x NM 45.1x 38.4x 19% 17% 18% 77% 76% 73% 27% 26% 25%
DocuSign $279.57 $54,470 $781 $947 $54,636 37.6x 26.7x 20.7x NM NM NM 49% 41% 29% 78% 80% 77% 16% 20% 21%
Palantir Technologies Inc. $26.36 $49,559 $2,339 $453 $47,672 43.6x 32.2x 24.9x NM NM NM 47% 36% 29% 77% 80% 73% 19% 26% 27%
Veeva Systems Inc. $310.95 $47,550 $2,150 $60 $45,460 31.0x 24.9x 21.0x NM NM NM 33% 24% 19% 74% 74% 73% 42% 40% 40%
Okta $244.68 $37,431 $2,690 $1,970 $36,711 43.9x 30.0x 21.8x NM NM NM 43% 46% 38% 78% 77% 75% 5% (12%) (5%)
UiPath Inc. $67.93 $34,565 $1,880 $19 $32,705 NM 38.1x 28.7x NA NM NM 81% 41% 33% 85% 88% 85% 0% (2%) (2%)
Cloudflare $105.84 $32,877 $1,035 $436 $32,277 NM NM 39.5x NM NM NM 50% 43% 33% 77% 78% 77% 4% 7% 11%
Datadog $104.08 $32,097 $1,548 $796 $31,345 NM 35.3x 26.3x NM NM NM 66% 47% 34% 79% 78% 77% 13% 8% 11%
Unity Software Inc. $109.83 $30,688 $1,647 $135 $29,177 37.8x 28.8x 22.7x NM NM NM 43% 31% 27% 79% 79% 78% (3%) (5%) 1%
Zscaler $216.06 $29,597 $1,468 $957 $29,087 NM 37.5x 28.7x NM NM NM 49% 45% 31% 79% 79% 79% 14% 14% 16%
RingCentral $290.58 $26,406 $463 $1,441 $27,383 25.2x 18.2x 14.7x NM NM NM 33% 39% 24% 76% 77% 78% 15% 14% 14%
HubSpot $582.72 $27,228 $1,180 $741 $26,789 30.3x 21.5x 16.9x NM NM NM 31% 41% 27% 82% 82% 81% 12% 12% 13%
Splunk Inc. $144.58 $23,699 $1,865 $2,555 $24,389 10.9x 9.6x 7.9x NM NM NM (5%) 14% 21% 79% 77% 79% NM 2% 4%
Paycom Software $363.47 $21,006 $215 $47 $20,838 24.8x 20.5x 16.4x NM NM 41.1x 14% 21% 25% 86% 86% 87% 39% 39% 40%
Coupa Software Incorporated $262.11 $19,272 $600 $1,572 $20,246 37.4x 29.5x 23.7x NM NM NM 39% 27% 25% 71% 67% 65% 23% 17% 19%
Qualtrics International Inc. $38.25 $19,668 $635 $742 $19,776 25.9x 20.1x 16.7x NM NM NM 29% 29% 20% 76% 77% 74% (1%) 1% 3%
Bentley Systems $64.78 $17,926 $570 $717 $18,073 22.5x 19.7x 17.8x NM NM NM 9% 14% 11% 81% 79% 80% 33% 32% 33%
Zendesk $144.34 $17,126 $954 $1,183 $17,355 16.9x 13.2x 10.5x NM NM NM 26% 28% 25% 78% 81% 75% 11% 11% 12%
Dynatrace $58.42 $16,604 $325 $440 $16,719 25.4x 19.7x 15.8x NM NM NM 29% 29% 25% 81% 81% 81% 31% 26% 26%
Bill.com Holdings $183.18 $17,254 $1,736 $958 $16,475 NM NM 28.9x NM NM NM 57% 81% 84% 83% 83% 83% (5%) (1%) 2%
NetApp $81.82 $18,264 $4,604 $2,752 $16,412 2.9x 2.7x 2.6x 12.4x 11.0x 9.5x (0%) 8% 5% 65% 65% 65% 24% 25% 27%
Wix.com Ltd. $290.28 $16,422 $1,124 $1,011 $16,308 16.5x 12.6x 10.1x NM NM NM 30% 30% 25% 70% 62% 70% 9% 6% 12%
McAfee Corp. $28.02 $4,632 $346 $4,080 $14,543 5.0x 7.2x 6.7x 13.8x 20.1x 16.7x 10% (30%) 7% 79% 79% 72% 36% 36% 40%
Five9 $183.39 $12,413 $643 $833 $12,602 29.0x 22.9x 19.5x NM NM NM 33% 27% 17% 64% 63% 61% 20% 16% 18%
Tuya Inc. $24.50 $13,714 $1,223 $11 $12,502 NM 37.0x 22.9x NM NM NM 70% 88% 61% 34% 42% 46% NM NM NM
Dropbox $30.31 $11,756 $1,916 $2,470 $12,310 6.4x 5.8x 5.3x 21.7x 16.6x 15.4x 15% 11% 9% 79% 80% 77% 30% 35% 34%
Procore Technologies $94.95 $12,256 $414 $93 $11,935 29.8x 24.4x 19.9x NA NM NM 38% 22% 23% 82% 82% 82% 0% (6%) (4%)
Confluent $47.50 $11,987 $280 $48 $11,756 49.7x 36.6x 27.3x NM NM NM 58% 36% 34% 68% 68% 67% NM NM NM
Asana $62.03 $11,205 $386 $613 $11,432 NM 33.8x 26.2x NM NM NM 59% 49% 29% 87% 89% 86% NM NM NM
SentinelOne $42.50 $11,119 $363 $46 $10,803 NM NA NA NM NA NA 100% NA NA 58% NM NM NM NA NA
ZoomInfo Technologies Inc. $52.17 $9,675 $354 $787 $10,501 22.4x 15.6x 12.1x 44.7x 33.9x 26.1x 60% 44% 29% 88% 88% 85% 50% 46% 46%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsPUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
SaaS (Cont.)
Paylocity Holding Corporation $190.80 $10,395 $182 $76 $10,289 17.8x 14.8x 12.1x NM NM 44.2x 16% 21% 22% 67% 67% 67% 29% 26% 27%
monday.com Ltd. $223.59 $9,866 $134 $21 $9,753 NM 34.6x 21.9x NA NM NM 106% 75% 58% 85% 85% 85% 0% NM (14%)
Upstart Holdings $124.90 $9,605 $257 $61 $9,409 41.2x 15.7x 12.0x NM NM NM 43% 163% 30% 84% 86% 85% 14% 11% 11%
Smartsheet Inc. $72.32 $9,048 $440 $86 $8,695 22.6x 16.9x 13.1x NM NM NM 42% 33% 29% 80% 80% 80% 6% 1% 1%
Squarespace $59.41 $8,084 $215 $536 $8,406 13.5x 10.9x 8.9x NA NM NM 28% 25% 22% 84% 84% 84% 0% 12% 15%
J2 Global $137.55 $6,209 $373 $1,698 $7,535 5.1x 4.4x 4.2x 12.2x 11.1x 10.4x 9% 14% 7% 84% 84% 84% 41% 40% 40%
DoubleVerify Holdings $42.34 $6,656 $50 $28 $6,634 27.2x 20.4x 15.6x NA NM 48.9x 34% 33% 31% 84% 84% 84% 0% 32% 32%
BlackLine $111.27 $6,459 $1,157 $1,078 $6,397 18.2x 15.3x 12.6x NM NM NM 22% 19% 21% 82% 80% 80% 16% 12% 15%
Q2 Holdings $102.58 $5,776 $529 $608 $5,855 14.5x 11.8x 9.8x NM NM NM 28% 23% 21% 54% 52% 50% 6% 7% 9%
Varonis Systems $57.62 $6,116 $824 $288 $5,580 19.1x 15.1x 12.3x NM NM NM 15% 27% 22% 86% 87% 87% 2% 5% 10%
Medallia $33.75 $5,352 $541 $626 $5,438 11.4x 9.6x 8.0x NM NM NM 19% 19% 20% 69% 69% 66% 8% 1% 7%
Duck Creek Technologies $43.51 $5,731 $372 $21 $5,380 24.0x 20.5x 17.5x NA NM NM 24% 17% 17% 57% 57% 57% 0% 2% 4%
C3.ai $62.53 $6,467 $1,093 $6 $5,379 31.2x 23.8x 17.6x NA NM NM NA 31% 35% 76% 76% 76% 0% NM NM
DigitalOcean Holdings $55.59 $5,924 $560 $0 $5,364 16.8x 13.1x 10.3x NM 42.4x 31.7x 25% 28% 28% 59% 75% 76% 15% 31% 32%
nCino $59.92 $5,718 $387 $28 $5,363 26.3x 20.7x 16.8x NM NM NM 48% 27% 23% 60% 61% 56% (5%) (6%) (1%)
Workiva Inc. $111.33 $5,566 $541 $332 $5,357 15.2x 12.8x 11.0x NM NM NM 18% 19% 16% 75% 76% 74% 3% (0%) 1%
KnowBe4 $31.27 $5,306 $95 $12 $5,223 29.9x 22.6x 18.1x NA NM NM 45% 32% 25% 84% 85% 84% 0% 8% 11%
Pure Storage $19.53 $5,532 $1,234 $911 $5,209 3.1x 2.7x 2.3x 44.9x 28.4x 20.8x 2% 16% 15% 70% 70% 69% 7% 9% 11%
Everbridge $136.08 $5,200 $735 $656 $5,121 18.9x 14.3x 11.4x NM NM NM 35% 32% 25% 72% 73% 70% 3% 2% 5%
Olo Inc. $37.39 $5,516 $587 $0 $4,929 NM 34.9x 27.4x NM NM NM 94% 44% 27% 74% 80% 82% 17% 11% 10%
Sprinklr $20.59 $5,108 $275 $81 $4,914 12.7x 10.8x 8.9x NM NM NM 19% 18% 21% 66% 69% 70% (7%) (19%) (14%)
AppFolio $141.20 $4,872 $148 $41 $4,765 15.4x 13.6x 11.4x NM NM NM 21% 13% 19% 62% 60% 61% 15% 13% 15%
Envestnet $75.86 $4,128 $372 $968 $4,724 4.7x 4.1x 3.7x 19.4x 19.6x 17.6x 11% 15% 11% 69% 66% 44% 24% 21% 21%
Sprout Social $89.42 $4,792 $168 $26 $4,650 35.0x 26.3x 20.8x NM NM NM 29% 33% 26% 74% 76% 74% (13%) (8%) (3%)
Cornerstone OnDemand $51.58 $3,415 $129 $1,162 $4,448 6.0x 5.2x 4.8x 15.9x 13.1x 12.1x 29% 16% 8% 74% 76% 73% 38% 40% 40%
Datto Holding Corp. $27.84 $4,490 $148 $44 $4,386 8.5x 7.3x 6.4x 29.1x 32.3x 28.3x 13% 15% 15% 73% 74% 72% 29% 23% 22%
BigCommerce Holdings $64.92 $4,564 $208 $15 $4,371 28.7x 22.1x 18.0x NM NM NM 36% 30% 23% 78% 78% 77% (16%) (15%) (9%)
LivePerson $63.24 $4,361 $668 $567 $4,260 11.6x 9.1x 7.4x NM NM NM 26% 27% 23% 72% 71% 72% 10% 8% 11%
Paymentus Holdings $35.50 $4,166 $49 $9 $4,126 13.7x 11.1x 9.0x NA NM NM 28% 24% 23% 31% 30% 31% 0% 7% 6%
Box $25.55 $3,953 $611 $689 $4,031 5.2x 4.7x 4.3x 20.7x 17.5x 15.8x 11% 10% 11% 73% 74% 72% 25% 27% 27%
New Relic $66.97 $4,315 $816 $517 $4,020 6.1x 5.8x 5.3x 48.3x NM NM 14% 7% 9% 80% 80% 80% 13% 1% 6%
Jamf Holding Corp. $33.57 $3,964 $196 $28 $3,796 14.1x 11.2x 9.3x NM NM NM 32% 26% 20% 81% 82% 79% 13% 10% 11%
JFrog Ltd. $45.52 $4,345 $606 $21 $3,760 24.9x 18.6x 14.3x NM NM NM 44% 34% 31% 82% 82% 82% 11% 5% 6%
Qualys $100.69 $3,941 $357 $55 $3,639 10.0x 9.0x 8.1x 21.5x 21.9x 20.1x 13% 11% 11% 81% 80% 79% 47% 41% 40%
Flywire Corporation $36.74 $3,731 $146 $24 $3,609 27.4x 23.6x 18.2x NA NM NM 39% 16% 30% 65% 70% 65% 0% (3%) (7%)
Mimecast Limited $53.05 $3,457 $293 $250 $3,414 7.1x 6.1x 5.4x 29.0x 23.5x 20.2x 19% 16% 13% 74% 74% 74% 24% 26% 27%
SPS Commerce $99.85 $3,581 $208 $22 $3,395 10.9x 9.1x 8.2x 39.0x 32.7x 28.0x 12% 19% 11% 69% 68% 68% 28% 28% 29%
PagerDuty $42.58 $3,561 $557 $310 $3,315 15.5x 12.3x 9.9x NM NM NM 28% 27% 24% 87% 85% 85% (7%) (9%) (1%)
Vertex $21.94 $3,238 $278 $32 $2,992 8.0x 7.3x 6.5x 38.2x 43.9x 37.5x 17% 10% 12% 71% 70% 66% 21% 17% 17%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsPUBLIC COMPANY VALUATIONS
Software Trading Statistics
($MM)
Trading Metrics Operating Metrics
Stock Price Market Cash & Total Enterprise EV / Revenue EV / EBITDA Revenue Growth Gross Margin EBITDA Margin
Company 6/30/2021 Cap ST. Invest. Debt Value (EV) CY20A CY21E CY22E CY20A CY21E CY22E 20A/19A 21E/20A 22E/21E CY20A CY21E CY22E CY20A CY21E CY22E
SaaS (Cont.)
SEMrush Holdings $23.02 $3,118 $172 $0 $2,947 23.6x 16.7x 13.2x NM NM NM 36% 41% 27% 77% 77% 78% (4%) (4%) (1%)
WalkMe Ltd. $29.26 $2,418 $112 $0 $2,326 15.7x 12.5x 9.8x NM NM NM 41% 26% 27% 72% 75% 78% NM NM (16%)
Talend S.A. $65.60 $2,146 $173 $179 $2,152 7.5x 6.5x 5.6x NM NM NM 16% 15% 16% 80% 80% 78% (5%) (6%) 3%
Zuora $17.25 $2,110 $197 $69 $1,982 6.5x 5.9x 5.1x NM NM NM 11% 11% 14% 62% 65% 57% 1% 1% 4%
Thryv Holdings $35.77 $1,205 $30 $775 $1,950 1.8x 1.9x 2.2x 5.2x 5.5x 7.2x (22%) (5%) (16%) 67% 65% 66% 34% 33% 31%
Sumo Logic $20.65 $2,205 $291 $10 $1,925 9.5x 8.2x 6.8x NM NM NM 31% 16% 20% 75% 75% 73% (11%) NM (16%)
Ping Identity Holding Corp. $22.90 $1,880 $55 $59 $1,884 7.7x 7.0x 6.2x NM NM NM 0% 11% 13% 81% 80% 82% 12% 9% 10%
Intapp $28.00 $1,646 $71 $275 $1,850 9.5x NA NA NA NA NA 21% NA NA 65% NM NM NA NA NA
PubMatic $39.07 $1,929 $110 $0 $1,819 12.2x 9.2x 7.6x 36.1x 31.7x 25.6x 31% 33% 21% 70% 70% 70% 34% 29% 30%
Similarweb Ltd. $19.70 $1,463 $58 $30 $1,435 15.4x 11.4x 8.9x NA NM NM 32% 35% 29% 76% 78% 76% 0% NM NM
ON24 $35.48 $1,645 $392 $6 $1,259 8.0x 6.0x 5.0x 45.4x NM NM 76% 33% 21% 79% 75% 75% 18% 2% 3%
Karooooo Ltd. $36.75 $1,137 $40 $9 $1,108 7.8x 6.2x 5.2x NA 13.6x 11.5x NA 27% 18% 70% 70% 70% 0% 45% 46%
ChannelAdvisor Corporation $24.51 $729 $82 $10 $656 4.5x 4.1x 3.8x 18.1x 19.7x 14.9x 12% 10% 8% 80% 79% 79% 25% 21% 25%
Zix Corporation $7.05 $391 $24 $226 $594 2.7x 2.4x 2.1x 11.7x 10.8x 9.5x 26% 14% 14% 54% 50% 57% 23% 22% 22%
Benefitfocus $14.10 $468 $189 $272 $551 2.1x 2.1x 2.1x 12.5x 11.6x 11.4x (9%) (4%) 3% 52% 55% 52% 16% 18% 18%
Veritone $19.71 $644 $127 $7 $524 9.1x 6.5x 5.1x NM NM NM 16% 40% 27% 71% 74% 73% NM (19%) (11%)
Park City Group $5.51 $107 $23 $7 $91 4.4x 3.9x 3.5x 30.9x 18.6x 13.6x 8% 13% 12% 66% 66% 66% 14% 21% 25%
Mean 18.4x 16.3x 13.7x 27.0x 23.6x 23.4x 36% 29% 23% 73% 74% 73% 14% 14% 15%
Median 15.5x 13.9x 12.0x 25.3x 20.1x 20.2x 29% 27% 22% 76% 77% 75% 13% 12% 12%
Notes:
Sources: Capital IQ and Wall Street Estimates. Market data as of 6/30/21.
MarginsRECENT ACQUISITIONS
Select Software M&A Transactions
($MM)
Announced Enterprise EV / Revenue EV / EBITDA
Date Acquirer Target Value (EV) LTM NTM LTM NTM Target Description
Provides connected device application security testing SaaS for businesses globally. Software provides features to identify
Vdoo Connected
6/29/21 JFrog $300 NA NA NA NA vulnerabilities before deployment and post-deployment by using detection and prevention methods, security analysis, gap resolution,
Trust
embedded protection, operations monitoring, compliance validation, and actionable insights.
Provides a range of ERP, SCM and CRM software, SaaS, and related services for businesses in a range of sectors globally. Offerings
6/28/21 Thoma Bravo QAD $2,000 5.9x NA NM NA
enable adaptive manufacturing and supply chain capabilities.
Rockwell Provides enterprise manufacturing ERP SaaS for businesses. Software enables operations management, supply chain management,
6/25/21 Plex Systems $2,220 NA 14.8x NA NA
Automation quality management, accounting and business intelligence capabilities.
Provides financial management SaaS and mobile applications for banks and businesses to develop data-driven financial services in
6/24/21 Visa Tink $2,144 NM NA NA NA
Europe. Software enables users to accessgregated financial data, initiate payments, and monitor transactions.
Provides video advertising delivery SaaS for businesses. Software enables advertisers to display video-oriented advertising on PCs,
6/24/21 ION Acq. Corp. II Innovid $1,310 22.1x 13.8x NA NA
tablets, mobile phones, smart TVs, outdoor media, and streaming devices.
Brunswick Provides location-based marine navigation GIS software and related marine mapping systems for maritime and shipping businesses,
6/24/21 Navico AS $1,050 2.2x NA NA NA
Corporation governmentencies and boating and fishing enthusiasts worldwide.
Northern
Provides self-driving trucking vehicle SaaS for carrier businesses in the trucking industry. Subscription-based offering enables machine
6/23/21 Genesis Acq. Embark Trucks $5,158 NA 5.9x NA NM
learning for auto-piloting navigation.
Corp. II
Provides marketing automation SaaS, including email and social media marketing and related analytics, for SMBs. SharpSpring was
6/22/21 Constant Contact SharpSpring $240 13.3x NA NM NA
acquired by SMTP in 2014. In 2015, SMTP rebranded to SharpSpring, and in 2016 the SMTP assets were sold off to J2 Global.
Provides whistleblowing management SaaS for businesses in Europe. Software provides features for benchmarking and reporting, key
6/11/21 EQS Group Business Keeper $115 NA NA NA NA
account management, case management, translation, and regulatory compliance.
Khosla Ventures Provides an AI-enabled drug discovery and development software for pharmaceutical companies. Software enables data analysis for
6/9/21 Valo Health $2,811 NA NA NA NA
Acq. Co. improved success rates in discovery, development and approval of new pharmaceuticals.
Bain Capital / Provides cloud and on-premises network security detection and response analytics and operations management SaaS. Software
ExtraHop
6/8/21 Crosspoint $900 9.0x 7.2x NA NA enables secure IT operations and enterprise security by transforming unstructured network packet data into structured wire data,
Networks
Capital presenting that information in real time for troubleshooting, optimization, and business analytics.
Notes:
Sources: Capital IQ and Wall Street Estimates. Reflects M&A activity through 6/30/21, where Enterprise Value is >$100MM.
Transactions highlighted in light blue denote private equity transactions. 32
Multiples 50 considered NM.You can also read
