Given continued market volatility, we at ScaleView want to provide an update on the important metrics for leading software companies following their second quarter earnings update.
As you probably know, the market is watching these companies for signs of negative earnings revisions – this quarter showed that has not happened yet. To be clear, the high growth SaaS universe we track has been adversely affected by the changing macro paradigm, especially the change in interest rates. But this report shows the best companies continue to execute well despite the uncertainty.
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Highlights from the Quarter:
- 90% of the companies beat the consensus revenue estimates in Q2, 2022
- The median revenue growth rate stood at 31% YoY, while the median expected growth rate is 23%
- 58% of the companies reported a net revenue retention rate >120%
- Gross margin of 59% of the companies was over 70%
- High growth companies declined 63% vs. their 52-week high share price. High margin companies declined by 32%
- SVP Index universe companies trade at a median 2023E EV/Revenue of 5.4x and 2023E EV/EBITDA of 25.5x
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