HCA SaaS REPORT
Software-as-a-Service report – May 2022
In our Software-as-a-Service (SaaS) report for May 2022, we provide insights into the SaaS business model, market trends, valuation perspectives as well as deep dives into the Danish SaaS sector, which has been built up during a hot IPO market in the second half of 2020 and 2021. We have outlined several key SaaS metrics and parameters that investors should follow and benchmarked the companies across the Danish SaaS sector. Finally, we are presenting the investment cases of 8 Danish-listed SaaS companies (financials, key SaaS metrics, valuation perspectives, investment reasons, and risks), which are paying clients from a Digital IR/Corporate Visibility agreement.
Key takeaways – down but not out
Following record-high valuations in 2021, we have observed a sharp decline in valuation multiples to levels below pre-COVID, which has been dragged down by increasing interest rates and fear of slower growth rates. However, long-term double-digit growth rates are expected to continue supported by secular growth trends such as the ongoing digital transformation, automation, and optimization of resources. Thus, current entry levels look interesting for investors with a well-diversified portfolio tripping to get exposure to the software sector and scalable SaaS business models.