Category Archives: SaaS Business and Finance

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Why SaaS Companies Grow Faster than Software Companies

SaaS companies grow much faster than SaaP (Software as a Product) companies.  Public SaaS companies grew at 28% in 2014 versus 8% for SaaP companies (Software Equity Group).  According to the Pacific Crest SaaS Survey, private SaaS companies grew even faster at a median rate of Read More

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Balancing SaaS Growth and Profits to Maximize SaaS Company Valuation

The typical SaaS company grows faster, loses more money, and has a higher valuations than product sale companies. Weighted Average Profitability Cash Flow from Operations Growth Price/Revenue Ratio Public SaaS Companies -8% +15% 33% 8.7x Public Software Companies +8% +28% 8% 3.3x Source: SEC filings – Read More

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Why Investors Love SaaS Companies

The valuation of SaaS companies is much higher than software product sales companies.  Public SaaS companies have an Enterprise Value to Revenue median ratio of 5.7x contrasted with 2.9x for software companies according to Software Equity Group’s 2015 Software Industry Financial Report. Do Investors love Read More

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How’s Your SaaS Business Performing?

High-growth SaaS companies are often unprofitable, yet financial institutions value them highly. The median net income for Public SaaS companies is negative 4.5%. Yet, despite these losses, the Price to Enterprise Value ratio for SaaS companies is 8.0x compared with 3.2x for Software companies, according Read More

About US

Dave Key

Dave Key is a SaaS thought leader who has built and advised SaaS companies for the last 12 years. Dave has co-founded three software companies: FileNet, FieldCentrix, and YouMail building revolutionary, large scale software products for new worldwide markets.

Dave has a breadth of experience as a CEO, Software VP, CFO, Chairman of the Board, Audit Committee Chairman, Advisor, and Angel Investor.

Dave assists companies with their SaaS strategy and execution to thrive in a world moving to the cloud and mobile platforms.