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