Clouded Judgement 4.21.23

Clouded Judgement 4.21.23

Q1 Earnings Season

Morgan Stanley released a report yesterday suggesting “cloud optimizations [were] an intensifying headwind in Q1.”

Top 10 Enterprise Value to Revenue Multiple

Operating Metrics

  • Median NTM growth rate: 16%
  • Median LTM growth rate: 26%
  • Median Gross Margin: 75%
  • Median Operating Margin (21%)
  • Median FCF Margin: 2%
  • Median Net Retention: 116%
  • Median CAC Payback: 30 months
  • Median S&M % Revenue: 47%
  • Median R&D % Revenue: 28%
  • Median G&A % Revenue: 18%

Comps Output

Rule of 40 shows LTM growth rate + LTM FCF Margin. FCF calculated as Cash Flow from Operations - Capital Expenditures