KeyBanc Capital Markets Private SaaS Company Survey Shows Acceleration of Growth in 2021

12th annual survey also reveals recent private company valuation data

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Sep 21, 2021, 10:12 ET

SAN FRANCISCO, Sept. 21, 2021 /PRNewswire/ -- KeyBanc Capital Markets (KBCM), the corporate and investment banking unit of KeyCorp (NYSE: KEY), today released results from its Technology Group's 12^th annual Private SaaS Company Survey (formerly known as the Pacific Crest Securities Private SaaS Company Survey), the benchmarking report by which the Software-as-a-Service industry (SaaS) measures financial and operating performance. This year's survey, which includes responses from senior executives at more than 350 companies, found a reacceleration of growth as companies recovered from the economic disruptions caused by COVID-19.

Survey respondent forecasts for 2021 show growth levels increasing back to a median of 36% for companies with more than $5 million dollars in annual recurring revenue (ARR), as the disruptions from COVID-19 become less severe. Like many industries, the global private SaaS sector experienced a slowdown in growth during 2020. Median growth slowed to 28%, notably below the pre-pandemic range of 35-40% which the survey has historically polled.

"A new component of the KBCM Private SaaS Company Survey includes data on recent valuations, which can be very difficult to come by for private companies," says Adam Noily, Managing Director of Software Investment Banking at KBCM. "While the survey reveals a median enterprise value of 8.4x ARR at the time of transaction, there's quite a bit of variation and a very strong relationship between valuations and top-line growth."

The KBCM Private SaaS Company Survey establishes operational and financial benchmarking data for executives and investors in SaaS companies, from go-to-market selling strategies, churn and net retention rates and customer acquisition costs, to operational management, growth and margin structures, as well as data on valuation and exit expectations. To view the full survey results and to hear a deeper analysis of the findings, visit us at www.key.com/saassurvey .

About the KBCM Technology Group Private SaaS Company Survey
More than 350 senior executives from SaaS companies around the world participated anonymously and confidentially in the 2021 survey. Responses were submitted online between June and July 2021. KBCM cannot verify accuracy of responses. Observations and commentary contained herein relate solely to the survey results and cannot necessarily be applied elsewhere. For more information about the KBCM Technology Group, please visit us online.

About KeyBanc Capital Markets
KeyBanc Capital Markets is a leading corporate and investment bank providing capital markets and advisory solutions to dynamic companies capitalizing on opportunities in changing industries. Our deep industry expertise, broad capabilities and unique ideas are seamlessly delivered to companies across the Consumer & Retail, Diversified Industries, Healthcare, Industrial, Oil & Gas, Real Estate, Utilities, Power & Renewables, and Technology verticals. With over 800 professionals across a national platform, KeyBanc Capital Markets has more than $32 billion of capital committed to clients and an award-winning Equity Research team that provides coverage on over 600 publicly-traded companies. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services, are offered by KeyBank N.A.

About KeyCorp
KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $181.1 billion at June 30, 2021. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of more than 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

SOURCE KeyCorp