Today, our SaaS newsletter for September has been sent out. Overall, September was less eventful across the SaaS sector, yet we can look back at the global/US SaaS sector’s Q2 earnings season before we move into the Q3 earnings season.

Despite the focus on profitable growth also shown by improved EBITDA results and better cash efficiency, the growth rate development trend is still going in the wrong direction, both in the US/global SaaS sector and the Danish SaaS sector. In the US, the median Q2 revenue growth was 15% YoY (18% YoY in Q1), while the Danish companies (smaller in size) grew ARR by a median of 21% YoY in Q2 (28% YoY in Q1).

Looking at the median ARR valuation multiple, this is now 6.1x by the end of September (6.2x by the end of August) for the global/US SaaS sector (SaaS Capital Index) and 3.1x ARR by the end of September 2024 (3.2x ARR by the end of August) for the Danish SaaS sector (HCA SaaS Index). Besides the cautious environment, the multiple contraction for the SaaS sector is also affected negatively by an increasing US 10Y bond yield, climbing above 4.00% at the beginning of October. 

We have also covered some news for the Danish SaaS sector. Read the full newsletter where you also can get an overview of the financial calendar for Q3 across the Danish-listed SaaS companies: Link

Disclaimer: HC Andersen Capital receives payment from some of the mentioned SaaS companies (Agillic, Impero, MapsPeople, OrderYOYO, and Penneo) for a Digital IR/Corporate Visibility subscription agreement. /Kasper Lihn 14:11, 10 October 2024.