HCA SaaS update: A short 2023 recap and a look into 2024

The HCA SaaS newsletter for December 2023 has been sent out today, covering a short recap of 2023 and a look into 2024.
After a strong year-end 2023 stock market rally following declining interest rates and expectations of massive cuts by the central banks in 2024, the rally has primarily been observed across the larger software companies. Across approx. 80 US-listed SaaS companies, the median return was more than 40% in 2023 (source: Clouded Judgement). However, this positive momentum has not been seen across the Danish SaaS sector yet, as the median return was -20% in 2023 based on the current listings.
However, some market analysts expect that smaller and medium-sized companies will rebound in 2024 with an increasing risk appetite and valuation gap to the larger companies. This could be positive for the Danish SaaS sector, primarily consisting of smaller and medium-sized companies, after hitting a median ARR multiple of 3.0x by the end of 2023 (vs. 6.9x ARR for the US SaaS sector by the end of November 2023 – the ARR multiple from The SaaS Capital Index by the end of December 2023 is not updated yet, but this number may have increased in December 2023).
Read the full newsletter here: Link
Disclaimer: HC Andersen Capital receives payment from some of the mentioned SaaS companies (Agillic, Impero, MapsPeople, OrderYOYO, and Penneo) for a Digital IR/Corporate Visibility subscription agreement. /Kasper Lihn 13:00, 12 January 2024.