I just published History of Public SaaS Returns and Valuations
Alex Clayton
335 posts
Alex Clayton
@afc
Technology investor at Meritech.
Joined December 2008
- I just published Zoom IPO | S-1 Breakdown medium.com/p/zoom-ipo-s-1…
- If you're a late-stage software company with $300M+ of last-twelve-months revenue, a compelling AI story, and growing 40-50% with strong unit economics, the public markets are now wide open :).
- The revenue from just the AI Labs (publicly reported figures from OpenAI and Anthropic), along with the public AI infrastructure companies, has already eclipsed all public SaaS revenue in 2024 (Nvidia's datacenter revenue drives most of the growth). It will almost double public
- Vertical software company @ServiceTitan ($TTAN) filed for an IPO, the 3rd SaaS company of the year. They’re almost $800M in ARR growing 25% year-over-year and should be trading in the next few weeks. $TTAN’s performance should be a barometer for the dozens of other SaaS IPOs
- I just published Datadog IPO | S-1 Breakdown
- ServiceTitan ($TTAN) updated their S-1/A with a pricing range of $52 -> $57/share. At the midpoint, that represents a ~$5.5B market cap on a fully diluted basis. That is 25% below their last round Series H price of $72.50/share and 54% below the peak ZIRP valuation of
- Given that the IPO window could open soon, we thought it was the right time to analyze what it might take for a SaaS company to go public in today’s market. Moreover, there is a narrative that a business must be close to $1B of ARR to go public. We believe that is no longer
- What is the new normal for public SaaS valuations? Only 17 public SaaS companies trade >10x ARR. @MeritechCapital analyzed the financial + operating metrics of these 17 companies to show what it takes to be a member of The 10x ARR Club in 2023. meritechcapital.com/blog/the-10x-a…
- Excited to share Meritech Insights, one of the most comprehensive free repositories of public company metrics. Thanks to my colleague, @amdecamillo for helping make this happen. meritechcapital.com/blog/sharing-m… meritechcapital.com/insights
- Check out the market section presentation from @MeritechCapital's 2024 Annual Meeting. We cover the public and private markets and the opportunity in AI. Some of our favorite slides in this thread and link to full preso below:
