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