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Analyst Comment

HCA SaaS Update July: Reports from US cloud giants show signs of growth bottoming out

By Kasper LihnHead of Research

In July, the Danish SaaS median ARR multiple increased slightly to 4.2x ARR (4.1x ARR in June). The SaaS Capital Index, covering larger global US-listed SaaS companies, increased to 7.4x ARR by the end of July (from 7.1x ARR by the end of June). 

However, we currently see headwinds from an increasing US 10Y bond yield (now back above 4%) following continued strong macroeconomic data, which may affect SaaS sector valuation negatively, if it continues to higher levels.

On the other hand, new Q2 reports from the US cloud giants support that the current optimization phase with continued declining growth rates may be close to its end. In this newsletter, primarily covering recent July SaaS news, we also provide an update on growth rates in the Danish SaaS sector ahead of the Q2 reporting season.

Click on the following link to read more: 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 15:33, 8 August 2023.

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