On median, these companies grew revenue 43% from the prior year, while the average was 51%. Median overall revenue was $168mm while the average was $286mm (that average is skewed by names like McAfee which had $2.6bln of revenue). A few other observations.
For an IPO, revenue should generally be $100mm+. Only 10 companies had revenue below $100mm at the time of IPO. BackBlaze was the lowest ($54mm) and had 32% YOY growth.
Other revenue is small. On median, 11% of revenue was characterized as non-recurring such as services, implementation, and other non-recurring revenue. Only 27 of the 73 companies break out other revenue however, and in all likelihood every SaaS company has some level of non-recurring revenue.
Does this still apply? There hasn’t been a SaaS IPO since December 2021, so does this data really still apply? We think it does. We believe the reason SaaS IPO’s aren’t happening is because of valuation the valuation ask of private SaaS companies wanting to go public is much higher than valuation bid of public company investors. Afterall, there is still a market for the companies in the list above as their stock trades daily. We’ll see.
Sammy is the Managing Partner and Co-Founder of Blossom Street Ventures. Visit us at blossomstreetventures.com and email directly at firstname.lastname@example.org://blossomstreetventures.com/metrics/