KeyBanc Capital Markets Private SaaS Company Survey Shows Acceleration of Growth in 2021
12th annual survey also reveals recent private company valuation data
SAN FRANCISCO, Sept. 21, 2021 /PRNewswire/ -- KeyBanc Capital Markets (KBCM), the corporate and investment banking unit of KeyCorp (NYSE: KEY), today released results from its Technology Group's 12th annual Private SaaS Company Survey (formerly known as the Pacific Crest Securities Private SaaS Company Survey), the benchmarking report by which the Software-as-a-Service industry (SaaS) measures financial and operating performance. This year's survey, which includes responses from senior executives at more than 350 companies, found a reacceleration of growth as companies recovered from the economic disruptions caused by COVID-19.
Survey respondent forecasts for 2021 show growth levels increasing back to a median of 36% for companies with more than $5 million dollars in annual recurring revenue (ARR), as the disruptions from COVID-19 become less severe. Like many industries, the global private SaaS sector experienced a slowdown in growth during 2020. Median growth slowed to 28%, notably below the pre-pandemic range of 35-40% which the survey has historically polled.
"A new component of the KBCM Private SaaS Company Survey includes data on recent valuations, which can be very difficult to come by for private companies," says Adam Noily, Managing Director of Software Investment Banking at KBCM. "While the survey reveals a median enterprise value of 8.4x ARR at the time of transaction, there's quite a bit of variation and a very strong relationship between valuations and top-line growth."
The KBCM Private SaaS Company Survey establishes operational and financial benchmarking data for executives and investors in SaaS companies, from go-to-market selling strategies, churn and net retention rates and customer acquisition costs, to operational management, growth and margin structures, as well as data on valuation and exit expectations. To view the full survey results and to hear a deeper analysis of the findings, visit us at www.key.com/saassurvey .
About the KBCM Technology Group Private SaaS Company Survey
About KeyBanc Capital Markets
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Company Codes: NYSE:KEY
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