The median EV/Revenue multiple for the SEG SaaS Index grew an outstanding 20% YOY, reaching a record 14.7x in 2021.

The SEG SaaS Index surpassed $600M in median TTM revenue for the first time as revenue growth spiked to 27.2% in 4Q21.

In 4Q21, SaaS highflyers saw a significant correction in multiples as investors shifted away from riskier high-growth companies that boasted some of the highest multiples in the Index.

While the SaaS Index remains largely unprofitable (-3.1% median EBITDA margin), median free cash flow from operations improved substantially over the last two years (9.7% in 2021 vs. 4.5% in 2019).

Snowflake (99.7x), Bill.com (92.3x), and Cloudflare (90.1x) lead the SEG SaaS Index in terms of EV/Revenue multiples.

Dev Ops & IT Management (17.4x) and Communications & Collaboration (16.5x) continued to lead other product categories in median EV/Revenue multiples in 4Q21.