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At the time of the IPO, the median Software-as-a-Service (SaaS) company generates $100M in revenue, creates $2.6M in profit and holds $85M in cash on the balance sheet. A company in this position typically raises $107M in its IPO and trades at 11x revenue, for a $1.1B market cap.

The author presents 3 charts, analyzing these SAAS companies that have already IPO'd, that reveal the path to getting there:
- median revenue ramp since year of founding
- median revenue growth per year
- net income as a percent of revenue

  • SE

    Sean Ellis

    about 6 years ago #

    Wow, great to see this data!

    • SE

      Sean Ellis

      about 6 years ago #

      I asked author (Tomasz Tonguz) over Twitter if he knew the month over month MRR growth rate averages, but unfortunately he didn't have that number. I'd love to know that number. I often hear the target of 15% - 20% MRR growth as being "good" but it would be great to know what the public companies actually did.

      • AA

        Anuj Adhiya

        about 6 years ago #

        @Sean:
        Pardon the newbie question but why were you so interested in the for the numbers for month over month MRR growth rate (and specifically in the context of going public)?

  • RS

    Rushabh Sheth

    about 6 years ago #

    Indeed a fantastic analysis.

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