©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.
1
3) Representative Software Transactions
Regulatory Intelligence
Software
Acquired by
Logistics Data Entry
Automation Software
Acquired by
Property Tax & Transfer
Pricing Software
Acquired by
a portfolio company of
Legal & Tax Professional
Learning Software
Acquired by
a portfolio company of
Corporate Compliance
Software
Acquired by
a portfolio company of
KPMG Corporate Finance – Software Investment Banking Overview
Construction Software
Acquired by
a portfolio company of
Recruitment Software
Capital Raise
Energy & Building Analytics
Software
Acquired by
Enterprise Workload
Automation Software
Acquired by
a portfolio company of
Wealth Management
Software
Acquired by
a portfolio company of
5,564
6,111
6,581
8,905
9,173
Ernst & Young
Deloitte
Houlihan Lokey
PwC
KPMG
(3) Refers to the global Corporate Finance practices of KPMG International’s network of independent member firms
Global KPMG
Professionals
265,000+
M&A Transactions
Closed since 2013
5,000+
Global KPMG CF
Professionals
2,500+
Global KPMG Technology
Investment Bankers
200+
KPMG
by the numbers
(2)
(2)
North
America
433
professionals
40 offices in
10 countries
Asia
Pacific
536
professionals
21 offices in
10 countries
EMEA
1,578
professionals
113 offices in
64 countries
Software Investment Banking Team
EMEA
200+ Global
KPMG Technology
Investment Bankers
170+
Offices
265,000+
Global KPMG
Professionals
1,000+ Cross-Border
Transactions
in Past 5 Years
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1) KPMG Corporate Finance Credentials - Most Active Middle-Market Advisor Globally
2) Global Senior Technology M&A Team(3)
Worldwide Financial Advisor Rankings(1)
Over Past 20 Years (2004-2023)
Worldwide TMT Financial Advisor Rankings(1)
Over Past 20 Years (2004-2023)
1,235
1,285
1,611
1,767
1,897
UBS
Deloitte
PwC
KPMG
Houlihan Lokey
The M&A Atlas Awards
Software &
IT Deal of
the Year
2023
Corporate /
Strategic
M&A Deal of
the Year
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Middle
Market
Investment
Bank of the
Year
2021
(1) Refinitiv - Transactions less than $500m
(2) Refers to the global Corporate Finance practices of KPMG International’s network of independent member firms
2+ years experience
baileypayne@kpmg.com
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Associate
Portland
10+ years experience
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Director
Portland
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20+ years experience
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MD
Silicon Valley /
Portland
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Sr. Associate
Portland
7+ years experience
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Vice President
Chicago
1+ year experience
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Associate
Portland
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Portland / Silicon Valley
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Portland
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Silicon Valley
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Chicago
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Boston
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Neil Blair
Toronto
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Toronto
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Toronto
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Vancouver
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Vancouver
North America
Identity Security Software
Acquired by
Automotive Intelligence
Software
Acquired by.
Retail POS Software
Acquired by
Wealth Management
Software
Acquired by
Identity Security Software
Capital Raise
Energy Modeling &
Sustainability Software
Capital Raise
Public Safety Software
Capital Raise
Healthcare Software
Acquired by
Cybersecurity Training
Software
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Software
Acquired by
Representative TMT
Deals
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Acquired by
Acquired by
Capital Raise
Capital Raise
©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.
2
5.7x
5.7x
4.7x
3.9x
11.8%
11.2%
10.4%
13.8%
Q3'23
Q4'23
Q1'24
Q2'24
KPMG Corporate Finance – Software Q2’24 Update
6.7x
5.9x
6.2x
4.6x
11.0%
10.4%
9.8%
Q3'23
Q4'23
Q1'24
Q2'24
5.7x
7.1x
6.5x
5.3x
13.1%
12.0%
13.0%
19.0%
Q3'23
Q4'23
Q1'24
Q2'24
6.8x
9.1x
8.7x
7.5x
13.8%
10.3%
10.0%
11.5%
Q3'23
Q4'23
Q1'24
Q2'24
6.8x
8.3x
8.7x
8.9x
8.9%
10.5%
11.2%
10.1%
Q3'23
Q4'23
Q1'24
Q2'24
5.9x
6.6x
6.8x
5.9x
12.3%
12.3%
11.8%
15.1%
Q3'23
Q4'23
Q1'24
Q2'24
7.3x
7.6x
8.6x
7.7x
13.3%
14.2%
14.3%
13.8%
Q3'23
Q4'23
Q1'24
Q2'24
4.0x
4.2x
4.5x
4.7x
5.0%
3.9%
4.4%
5.9%
Q3'23
Q4'23
Q1'24
Q2'24
4) Valuation Overview - Public Market Trends(1)
(1) Market data as of June 28, 2024; Source: Capital IQ
Analytics & Data Management Software
Human Capital Management Software
Collaboration & Communication Software
DevOps & Infrastructure Software
Financial, Accounting, & Banking Software
Sales, Marketing & eCommerce
Security Software
Vertically Focused
Median EV / NTM Revenue
NTM Revenue Growth Rate
©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.
3
5.3x
8.5x
18.5x
4.5x
9.1x
0.0x
4.0x
8.0x
12.0x
16.0x
20.0x
Jul-19
Oct-19
Jan-20
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
Median EV / NTM Rev (n=103)
Median
Max
Min
Average
0.5x
0.5x
1.2x
0.2x
0.6x
0.0x
0.5x
1.0x
1.5x
Jul-19
Oct-19
Jan-20
Mar-20
Jun-20
Sep-20
Dec-20
Mar-21
Jun-21
Sep-21
Dec-21
Mar-22
Jun-22
Sep-22
Dec-22
Mar-23
Jun-23
Sep-23
Dec-23
Mar-24
Jun-24
Median EV / NTM Rev (Growth Adj.) (n=103)
Median
Max
Min
Average
KPMG Corporate Finance – Software Q2’24 Update
4) Valuation Overview - Public Market Trends(1) - (Cont’d)
(1) Market data as of June 28, 2024; Source: Capital IQ
Median EV / NTM Revenue
Median EV / NTM Revenue (Growth Adjusted)
©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.
4
KPMG Corporate Finance – Software Q2’24 Update
5) Valuation Overview - Publicly Traded Comparable Companies(1)
(1) Market data as of June 28, 2024; (2) Rule of 40 = ‘23-’24 Revenue Growth + CY’24F FCF Margin; Source: Capital IQ
Software
Enterprise
Value (EV)
EV / Revenue
Revenue
Rev. Growth
Gross Margin
FCF Margin
Rule
of 40(2)
CY’24F
CY’24F
(Growth
Adj.)
CY’25F CY’24F
CY’25F
’23-’24
’24-’25
CY’24F
CY’25F
CY’24F CY’25F
‘23-’24 Revenue Growth < 25%
Dynatrace
$12,536
7.8x
0.5x
6.8x
$1,599
$1,847
17.2%
15.5%
84.7%
84.7%
24.0%
23.9%
41.1%
Elastic
$11,096
7.8x
0.5x
6.7x
$1,421
$1,658
17.3%
16.6%
76.5%
76.3%
12.8%
14.5%
30.1%
Guidewire
$11,061
10.7x
0.9x
9.4x
$1,031
$1,175
11.4%
13.9%
62.7%
63.1%
11.6%
18.5%
23.0%
Zoom Video
$11,000
2.4x
1.1x
2.3x
$4,623
$4,798
2.1%
3.8%
78.8%
79.1%
32.5%
33.8%
34.6%
Informatica
$10,019
5.9x
0.9x
5.5x
$1,697
$1,820
6.4%
7.3%
80.9%
80.9%
24.7%
26.1%
31.1%
DocuSign
$10,003
3.4x
0.6x
3.2x
$2,928
$3,109
6.0%
6.2%
81.4%
81.7%
27.4%
28.8%
33.4%
Procore Technologies
$9,035
7.9x
0.4x
6.6x
$1,140
$1,370
20.0%
20.1%
85.7%
85.4%
11.2%
13.8%
31.3%
Wix.com
$8,981
5.1x
0.4x
4.5x
$1,756
$2,000
12.4%
13.9%
68.5%
69.0%
24.6%
27.5%
37.1%
AppFolio
$8,657
11.2x
0.5x
9.3x
$773
$928
24.6%
20.0%
65.3%
66.1%
22.3%
22.6%
46.9%
Confluent
$8,591
9.0x
0.4x
7.2x
$959
$1,194
23.4%
24.5%
76.2%
76.0%
0.1%
5.1%
23.5%
Dropbox
$8,258
3.2x
1.9x
3.2x
$2,544
$2,607
1.7%
2.5%
83.2%
83.0%
36.7%
37.3%
38.4%
Unity Software
$7,779
4.2x
NM
3.8x
$1,839
$2,064
(15.9%)
12.2%
81.7%
80.8%
14.1%
19.8%
(1.8%)
Paycom
$7,719
4.1x
0.4x
3.7x
$1,869
$2,087
10.4%
11.7%
84.1%
84.4%
15.7%
17.8%
26.0%
CCC
$7,595
8.0x
0.8x
7.4x
$948
$1,032
9.4%
8.8%
77.7%
77.9%
26.6%
27.9%
36.0%
Twilio
$7,058
1.6x
0.3x
1.5x
$4,349
$4,721
4.7%
8.5%
53.0%
53.0%
12.7%
14.1%
17.4%
Paylocity
$7,005
4.8x
0.2x
4.2x
$1,470
$1,668
23.9%
13.5%
72.9%
73.1%
20.1%
21.6%
44.0%
SPS Commerce
$6,690
10.7x
0.7x
9.3x
$624
$716
16.2%
14.8%
68.2%
68.6%
23.0%
23.8%
39.1%
Squarespace
$6,369
5.3x
0.3x
4.6x
$1,205
$1,376
19.0%
14.3%
74.1%
76.4%
23.8%
24.3%
42.8%
ZoomInfo
$5,671
4.5x
2.5x
4.2x
$1,262
$1,357
1.8%
7.5%
89.7%
89.6%
32.4%
34.1%
34.2%
Vertex
$5,592
8.5x
0.6x
7.5x
$657
$750
14.7%
14.1%
71.6%
72.0%
8.5%
12.6%
23.3%
Smartsheet
$5,475
4.9x
0.3x
4.2x
$1,120
$1,297
16.8%
15.8%
83.9%
84.1%
19.7%
22.1%
36.6%
HashiCorp
$5,466
8.4x
0.7x
7.2x
$652
$757
11.8%
16.1%
84.3%
83.3%
5.3%
9.2%
17.1%
UiPath
$5,403
3.8x
0.5x
3.4x
$1,409
$1,575
7.7%
11.8%
85.3%
85.3%
21.4%
21.8%
29.0%
PowerSchool
$5,115
6.5x
0.5x
5.9x
$790
$874
13.2%
10.6%
70.7%
71.0%
18.4%
21.6%
31.6%
Tenable
$5,083
5.6x
0.4x
4.9x
$905
$1,030
13.3%
13.8%
80.1%
80.1%
21.8%
23.6%
35.1%
Varonis
$4,883
9.0x
1.0x
8.0x
$542
$612
8.7%
12.8%
84.6%
84.4%
13.5%
15.0%
22.2%
Qualys
$4,762
7.9x
0.9x
7.2x
$606
$665
9.2%
9.9%
82.4%
82.4%
35.6%
35.8%
44.9%
DigitalOcean
$4,402
5.7x
0.5x
5.1x
$770
$870
11.1%
13.1%
60.3%
59.9%
19.4%
20.3%
30.5%
Software
Enterprise
Value (EV)
EV / Revenue
Revenue
Rev. Growth
Gross Margin
FCF Margin
Rule
of 40(2)
CY’24F
CY’24F
(Growth
Adj.)
CY’25F CY’24F
CY’25F
’23-’24
’24-’25
CY’24F
CY’25F
CY’24F CY’25F
‘23-’24 Revenue Growth > 25%
CrowdStrike
$90,377
22.6x
0.7x
17.9x
$4,001
$5,060
30.9%
26.5%
78.2%
78.6%
32.2%
33.3%
63.1%
Atlassian
$45,148
9.5x
0.3x
7.9x
$4,730
$5,689
28.8%
20.3%
83.7%
82.7%
28.9%
28.3%
57.7%
AppLovin
$30,470
7.0x
0.2x
6.2x
$4,374
$4,879
33.2%
11.5%
72.7%
76.7%
38.6%
39.4%
71.9%
Cloudfare
$27,866
16.8x
0.6x
13.2x
$1,654
$2,104
27.6%
27.2%
78.6%
78.4%
9.9%
10.7%
37.5%
Samsara
$17,811
14.7x
0.5x
11.7x
$1,213
$1,524
29.4%
25.6%
75.2%
75.2%
6.5%
9.5%
35.9%
Toast
$13,233
2.7x
0.1x
2.2x
$4,887
$6,023
26.4%
23.2%
24.4%
25.7%
3.6%
6.3%
30.1%
Monday
$10,818
11.4x
0.4x
9.0x
$948
$1,207
29.9%
27.3%
89.5%
89.4%
25.4%
24.1%
55.3%
GitLab
$6,886
9.3x
0.3x
7.5x
$738
$922
27.3%
24.9%
90.7%
90.4%
9.5%
12.6%
36.8%
SentinelOne
$5,834
7.2x
0.2x
5.7x
$813
$1,030
30.9%
26.7%
78.4%
78.4%
3.4%
9.0%
34.3%
Bill.com
$4,954
3.7x
0.1x
3.2x
$1,344
$1,540
29.3%
14.6%
85.7%
84.6%
19.2%
19.6%
48.5%
Alkami
$2,709
8.2x
0.3x
6.6x
$332
$413
25.3%
24.4%
61.8%
63.6%
1.1%
8.2%
26.3%
‘23-’24 Revenue Growth < 25%
Salesforce
$244,852
6.5x
0.8x
5.9x
$37,859 $41,400
8.6%
9.4%
79.5%
79.7%
31.0%
32.1%
39.6%
Adobe
$244,351
11.4x
1.1x
10.2x
$21,468 $23,946
10.6%
11.5%
89.4%
89.4%
36.3%
40.1%
46.9%
SaerviceNow
$155,065
14.2x
0.7x
11.8x
$10,899 $13,150
21.5%
20.7%
81.8%
81.8%
31.3%
31.7%
52.8%
Shopify
$81,117
9.5x
0.5x
7.9x
$8,536
$10,261
20.9%
20.2%
50.8%
50.9%
14.7%
16.4%
35.6%
Workday
$55,470
6.6x
0.4x
5.7x
$8,378
$9,678
15.4%
15.5%
79.8%
80.4%
23.2%
25.6%
38.6%
Palantir Technologies
$52,842
19.6x
0.9x
16.3x
$2,698
$3,242
21.3%
20.2%
82.4%
82.5%
31.8%
31.8%
53.1%
Datadog
$41,557
15.9x
0.7x
12.9x
$2,618
$3,213
23.0%
22.8%
82.2%
81.9%
26.2%
26.8%
49.2%
Snowflake
$41,062
11.8x
0.5x
9.5x
$3,485
$4,302
24.2%
23.4%
72.7%
72.9%
25.8%
27.8%
50.0%
Block
$39,049
1.6x
0.1x
1.4x
$25,097 $28,024
14.5%
11.7%
34.7%
35.9%
8.6%
12.0%
23.1%
HubSpot
$29,313
11.4x
0.6x
9.7x
$2,561
$3,029
18.0%
18.3%
85.4%
85.2%
14.4%
15.5%
32.4%
Zscaler
$28,052
11.9x
0.5x
9.7x
$2,361
$2,892
24.6%
22.5%
80.7%
80.4%
23.1%
23.9%
47.7%
Veeva
$24,875
9.2x
0.6x
8.1x
$2,707
$3,054
14.5%
12.8%
75.3%
75.5%
38.8%
39.7%
53.3%
MongoDB
$17,485
9.2x
0.7x
7.7x
$1,893
$2,267
12.5%
19.7%
75.6%
76.0%
7.5%
10.9%
20.0%
Check Point
$15,628
6.1x
1.0x
5.8x
$2,560
$2,699
6.0%
5.4%
89.2%
89.4%
41.1%
41.7%
47.1%
Okta
$14,691
5.8x
0.5x
5.2x
$2,542
$2,847
12.3%
12.0%
81.1%
81.0%
21.9%
23.1%
34.3%
©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.
5
Software
Enterprise
Value (EV)
EV / Revenue
Revenue
Rev. Growth
Gross Margin
FCF Margin
Rule
of 40(2)
CY’24F
CY’24F
(Growth
Adj.)
CY’25F CY’24F
CY’25F
’23-’24
’24-’25
CY’24F
CY’25F
CY’24F CY’25F
‘23-’24 Revenue Growth < 25%
AvePoint
$1,726
5.4x
0.3x
4.6x
$318
$373
17.0%
17.2%
73.6%
74.2%
12.7%
15.3%
29.7%
Semrush
$1,721
4.7x
0.2x
4.0x
$368
$435
19.5%
18.4%
83.2%
83.4%
9.2%
9.9%
28.7%
Everbridge
$1,714
3.7x
1.1x
3.6x
$464
$480
3.4%
3.4%
73.8%
74.0%
13.5%
15.1%
16.8%
Dye & Durham
$1,521
4.4x
NM
4.0x
$342
$377
(0.6%)
10.1%
91.3%
92.0%
22.7%
NA
22.1%
PROS
$1,515
4.5x
0.5x
4.0x
$334
$375
9.9%
12.5%
66.4%
67.1%
7.4%
10.6%
17.3%
Zuora
$1,326
2.9x
0.5x
2.7x
$456
$497
5.6%
9.0%
73.1%
75.1%
NA
NA
NA
VTEX
$1,136
4.7x
0.2x
3.8x
$241
$296
19.8%
22.7%
71.5%
72.5%
0.8%
3.0%
20.6%
Fastly
$1,101
2.0x
0.2x
1.8x
$559
$629
10.4%
12.5%
58.8%
60.2%
0.6%
2.2%
11.0%
WalkMe
$980
3.5x
0.6x
3.2x
$282
$309
5.6%
9.6%
85.9%
86.0%
10.9%
14.2%
16.5%
Definitive Healthcare
$944
3.7x
1.3x
3.5x
$258
$273
2.7%
5.8%
84.4%
84.6%
27.5%
30.9%
30.2%
2U
$890
1.1x
NM
1.0x
$807
$874
(14.7%)
8.3%
0.0%
0.0%
NA
NA
NA
Amplitude
$775
2.6x
0.4x
2.4x
$294
$321
6.4%
9.1%
76.6%
76.8%
7.3%
9.5%
13.8%
Couchbase
$763
3.7x
0.2x
3.2x
$207
$241
15.2%
16.2%
88.3%
86.5%
(5.8%)
2.0%
9.4%
BigCommerce
$708
2.1x
0.3x
2.0x
$333
$362
7.7%
8.7%
77.7%
78.0%
5.6%
8.2%
13.3%
8x8
$639
0.9x
0.4x
0.9x
$722
$750
2.4%
3.9%
71.7%
71.3%
5.4%
10.5%
7.9%
Weave
Communications
$618
3.1x
0.2x
2.7x
$199
$228
16.5%
15.1%
70.6%
71.1%
4.0%
7.2%
20.5%
Skillsoft
$607
1.1x
NM
1.1x
$536
$557
(3.1%)
3.9%
72.7%
72.5%
(1.9%)
0.8%
(5.0%)
Ebix
$594
NA
NA
NA
NA
$0
NA
NA
NA
NA
NA
NA
NA
Yext
$532
1.3x
NM
1.3x
$395
$416
(2.2%)
5.3%
78.7%
78.9%
13.0%
19.0%
10.8%
LivePerson
$441
1.4x
NM
1.5x
$308
$298
(23.3%)
(3.3%)
66.9%
66.8%
(5.2%)
(2.1%)
(28.5%)
Olo
$373
1.4x
0.1x
1.2x
$276
$320
20.7%
16.1%
60.7%
57.7%
3.0%
4.7%
23.7%
Upper Quartile
$10,418
8.1x
0.6x
7.1x
$1,862
$2,096
20.9%
19.6%
83.5%
82.9%
23.9%
24.3%
37.1%
Median (All)
$4,762
5.5x
0.5x
4.7x
$810
$922
13.5%
13.8%
77.7%
78.0%
15.7%
18.5%
30.2%
Median (Growth ≥
25%)
$13,233
9.3x
0.3x
7.5x
$1,344
$1,540
29.3%
24.9%
78.4%
78.4%
9.9%
12.6%
37.5%
Median (Growth <
25%)
$4,213
5.1x
0.5x
4.5x
$779
$872
11.8%
13.1%
77.2%
77.4%
15.8%
18.5%
29.6%
Mean
$16,126
6.3x
0.5x
5.4x
$2,275
$2,558
13.3%
14.1%
73.9%
74.1%
16.4%
18.6%
30.2%
Lower Quartile
$2,217
3.7x
0.3x
3.2x
$502
$547
7.5%
9.4%
68.8%
69.2%
8.6%
10.8%
22.6%
KPMG Corporate Finance – Software Q2’24 Update
5) Valuation Overview - Publicly Traded Comparable Companies(1) - (Cont’d)
(1) Market data as of June 28, 2024; (2) Rule of 40 = ‘23-’24 Revenue Growth + CY’24F FCF Margin; Source: Capital IQ
Software
Enterprise
Value (EV)
EV / Revenue
Revenue
Rev. Growth
Gross Margin
FCF Margin
Rule
of 40(2)
CY’24F
CY’24F
(Growth
Adj.)
CY’25F CY’24F
CY’25F
’23-’24
’24-’25
CY’24F
CY’25F
CY’24F CY’25F
‘23-’24 Revenue Growth < 25%
Envestnet
$4,393
3.2x
0.3x
2.9x
$1,367
$1,502
9.8%
9.8%
60.5%
60.0%
10.3%
10.6%
20.1%
Darktrace
$4,371
5.8x
0.3x
4.8x
$754
$912
22.4%
20.9%
89.6%
89.7%
13.2%
19.4%
35.6%
Box
$4,245
3.9x
1.0x
3.7x
$1,079
$1,148
4.0%
6.4%
79.5%
79.5%
27.9%
29.9%
31.9%
RingCentral
$4,181
1.7x
0.1x
1.6x
$2,389
$2,583
13.8%
8.1%
78.4%
78.7%
16.2%
19.2%
30.0%
Workiva
$3,955
5.5x
0.4x
4.8x
$721
$831
14.5%
15.3%
77.8%
79.0%
11.0%
13.3%
25.5%
Zeta Global
$3,914
4.3x
0.2x
3.8x
$901
$1,037
23.6%
15.2%
60.9%
62.0%
9.0%
10.1%
32.6%
Q2
$3,833
5.6x
0.5x
5.0x
$690
$768
10.4%
11.4%
55.8%
57.0%
10.1%
13.1%
20.5%
nCino
$3,621
6.7x
0.5x
5.8x
$542
$628
13.7%
15.9%
66.5%
67.8%
15.9%
17.7%
29.6%
BlackLine
$3,609
5.6x
0.6x
5.1x
$646
$709
9.5%
9.8%
79.3%
80.0%
20.1%
21.8%
29.6%
Braze
$3,551
6.1x
0.3x
5.1x
$580
$700
22.9%
20.7%
68.8%
69.4%
0.6%
4.5%
23.5%
Jfrog
$3,511
8.2x
0.4x
6.8x
$428
$518
22.4%
20.8%
84.0%
82.9%
17.8%
20.9%
40.2%
Five9
$3,383
3.2x
0.2x
2.7x
$1,055
$1,259
15.9%
19.3%
59.8%
61.0%
10.6%
13.5%
26.6%
Rapid7
$3,305
4.0x
0.5x
3.6x
$835
$915
7.4%
9.5%
74.0%
74.4%
19.3%
20.6%
26.7%
N-able
$3,047
6.6x
0.7x
5.9x
$464
$514
10.0%
10.9%
84.8%
84.9%
16.6%
17.6%
26.6%
Kinaxis
$3,019
6.2x
0.4x
5.1x
$490
$588
14.8%
20.0%
60.9%
62.7%
16.5%
18.3%
31.3%
SolarWinds
$2,980
3.8x
1.4x
3.7x
$779
$816
2.7%
4.7%
90.7%
90.4%
34.4%
38.1%
37.1%
Asana
$2,948
4.1x
0.4x
3.6x
$723
$830
10.8%
14.8%
89.8%
89.8%
0.2%
5.4%
11.1%
C3.ai
$2,923
8.1x
0.4x
6.6x
$362
$444
22.2%
22.5%
68.9%
68.9%
(1.8%)
(3.2%)
20.5%
Agilysys
$2,693
10.2x
0.6x
8.4x
$265
$319
16.1%
20.6%
60.8%
61.0%
19.0%
18.4%
35.1%
Freshworks
$2,611
3.7x
0.2x
3.2x
$700
$822
17.4%
17.4%
84.3%
83.8%
17.9%
19.9%
35.3%
Intapp
$2,531
5.5x
0.3x
4.7x
$461
$535
17.5%
16.0%
73.3%
73.8%
12.6%
15.9%
30.2%
E2open
$2,420
3.8x
NM
3.7x
$632
$662
(1.7%)
4.8%
68.8%
68.4%
NA
NA
NA
Jamf
$2,284
3.7x
0.3x
3.2x
$621
$704
10.7%
13.5%
81.4%
81.5%
13.1%
21.6%
23.9%
Teladoc Health
$2,151
0.8x
0.4x
0.8x
$2,659
$2,755
2.2%
3.6%
70.7%
70.7%
7.7%
10.2%
9.9%
PagerDuty
$2,073
4.4x
0.4x
3.9x
$474
$537
10.0%
13.4%
85.0%
84.6%
16.8%
18.5%
26.7%
MeridianLink
$2,000
6.3x
1.5x
5.8x
$316
$343
4.2%
8.4%
67.4%
67.9%
24.4%
26.3%
28.6%
Sprinklr
$1,993
2.6x
0.4x
2.4x
$780
$826
6.6%
5.9%
74.6%
75.6%
7.7%
12.6%
14.2%
Sprout Social
$1,985
4.9x
0.2x
4.1x
$406
$483
21.6%
19.1%
78.3%
78.5%
7.1%
10.9%
28.6%
©2024 KPMG Corporate Finance LLC, a Delaware limited liability company. Member FINRA/SIPC. KPMG Corporate Finance LLC is a subsidiary of KPMG LLP, a Delaware limited liability partnership and a member firm of the KPMG global organization of independent member firms affiliated with KPMG
International Limited, a private English company limited by guarantee. KPMG Corporate Finance is not engaged in the business of public accountancy. All rights reserved.
6
Deal Matrix: Overall
Deal Size
TTM
Revenue
EV / TTM
Revenue
Upper Quartile
$2,529
$270
9.5x
Median
$564
$100
6.7x
Mean
$1,742
$287
8.0x
Lower Quartile
$170
$49
4.4x
KPMG Corporate Finance – Software Q2’24 Update
(1) Excludes transactions with deal value of <$30M, <2.5x multiple & undisclosed deal values; Source: Capital IQ & 451 Research
Date
Acquirer
Target
Target
Country
Sector
Buyer
Type
EV
TTM
Revenue
EV / TTM
Revenue Target Description
Jun’24
Nokia Oyj
Infinera
U.S.
Telecom
$3,797
$1,529
2.5x Optical networking
software & systems
Jun’24
PIXID SAS
VectorVMS
U.S.
Workforce
Management
$50
$11
4.4x Vendor & workforce
mgmt. software
Jun’24
CompuGroup
Medical Norway
Pridok
Norway
HCTech
$38
$5
8.3x Electronic patient records
mgmt. software
Jun’24
Corpay
GPS Capital
Markets
U.S.
FinTech
$725
$100
7.3x Cross-border payment &
treasury mgmt. software
Jun’24
Simulations Plus
Pro-ficiency
U.S.
HCTech
$100
$15
6.7x Life sciences performance &
intelligence software
Jun’24
Industrial and
Financial Systems
Copperleaf
Technologies
Canada
Asset
Management
$564
$64
8.8x AI-based enterprise decision
analytics software
Jun’24
Bain Capital
PowerSchool
U.S.
EdTech
$5,600
$723
7.7x K-12 administrative &
assessment software
Jun’24
Nemetschek
Canvas Solutions
U.S.
GRC
$771
$67
11.5x
Job site inspection &
safety software
Jun’24
SAP
WalkMe
U.S.
Enterprise
Management
$1,032
$270
3.8x Digital adoption software
May’24
Hg Capital
AuditBoard
U.S.
GRC
$3,000
$200
15.0x Audit, risk, compliance &
ESG mgmt. software
May’24
Alicorn
Glassbox
Israel
Customer
Management
$142
$49
2.9x Customer experience
mgmt. software
May’24
CyberArk Software Venafi
U.S.
Cybersecurity
$1,540
$150
10.3x Machine identity
mgmt. software
May’24
LogRhythm
Exabeam
U.S.
Cybersecurity
$500
$150
3.3x Cybersecurity operations &
analytics software
May’24
Palo Alto Networks
IBM
(QRadar SaaS)
U.S.
Cybersecurity
$500
$100
5.0x Threat detection &
response software
Date
Acquirer
Target
Target
Country
Sector
Buyer
Type
EV
TTM
Revenue
EV / TTM
Revenue Target Description
May’24
KKR
IQGeo
U.K.
Geospatial
Intelligence
$405
$57
7.2x Geospatial network
management software
May’24
Permira
Squarespace
U.S.
Website
Designing
$6,900
$1,056
6.5x Website design &
development software
May’24
Corpay
Paymerang
U.S.
FinTech
$475
$50
9.5x
Invoice & payments
automation software
May’24
Akamai
Technologies
Noname Gate
U.S.
Cybersecurity
$450
$20
22.5x API security software
May’24
Firstsource
Solutions
Quintessence
Business Solutions
India
Revenue
Management
$39
$15
2.7x Revenue cycle
mgmt. software
Apr’24
Thoma Bravo
Darktrace
U.K.
Cybersecurity
$4,992
$616
8.1x Cybersecurity NBAD software
Apr’24
GTCR
AssetMark
Financial
U.S.
Wealth
Management
$2,529
$708
3.6x Portfolio & wealth
mgmt. software
Apr’24
IBM
HashiCorp
U.S.
Infrastructure
Management
$6,400
$583
11.0x
Infrastructure & security
lifecycle mgmt. software
Apr’24
CoStar
Matterport
U.S.
Facility
Management
$1,600
$158
10.1x Facilities marketing &
mgmt. software
Apr’24
Armis
Silk Security
U.S.
Cybersecurity
$150
$5
30.0x Cyber risk prioritization &
remediation software
Apr’24
Symphony
Technology Group
Gresham
Technologies
U.K.
FinTech
$170
$61
2.8x Financial mgmt. software
Apr’24
Vista Equity
Partners
Model N
U.S.
GRC
$1,170
$254
4.6x Revenue optimization &
compliance software
Apr’24
Experian
illion Australia
Australia
GRC
$532
$114
4.7x Credit risk mgmt. software
Apr’24
Clearwater
Analytics
Wilshire Advisors
(risk and
performance
analytics assets)
U.S.
GRC
$40
$7
5.7x Risk & performance analytics
Apr’24
Advent / CDPQ /
Novacap
Investments
Nuvei
Canada
FinTech
$6,300
$1,190
5.3x Transaction processing
software
Deal Matrix: M&A by Strategic Acquirers
Deal Size
TTM
Revenue
EV / TTM
Revenue
Upper Quartile
$1,032
$150
10.3x
Median
$500
$67
7.3x
Mean
$1,078
$190
9.1x
Lower Quartile
$142
$15
4.7x
Deal Matrix: M&A by PE & PE-Backed Acquirers
Deal Size
TTM
Revenue
EV / TTM
Revenue
Upper Quartile
$5,144
$712
7.8x
Median
$1,850
$227
5.9x
Mean
$2,682
$424
6.4x
Lower Quartile
$476
$64
4.2x
6) Valuation Overview - Recent Precedent M&A Transactions(1)
Financial
Strategic
Strategic
Strategic
Strategic
Financial
Financial
Strategic
Strategic
Financial
Strategic
Strategic
Financial
Strategic
Financial
Financial
Strategic
Strategic
Strategic
Financial
Financial
Strategic
Strategic
Strategic
Financial
Financial
Strategic
Strategic
Financial