November has been eventful with several Q3 2024 reports across the SaaS sector and the announcement that Visma will make a voluntary recommended public takeover offer to purchase all shares in Penneo for approx. DKK 562m (DKK 16.50 per share, a premium of approx. 110%), corresponding to EV/ARR of approx. 5.8x. The takeover/acquisition ARR multiple is also significantly above the median ARR multiple of 3.4x of the Danish SaaS sector by the end of November 2024, yet somewhat close to other recent acquisitions from Digizuite (6.9x ARR) and Relesys (5.1x ARR). Across the broader global/US SaaS sector, software shares rebounded significantly in November. The median ARR multiple increased to 7.3x by the end of November 2024 (from 6.9x ARR) based on data from The SaaS Capital Index.

Last week, Impero announced its Q3 2024 results, accelerating its ARR growth to 31% YoY and improving its EBITDA. Moreover, Impero's cash flow from operations was positive for the first nine months of 2024, and the FCF/Net New ARR (12 months rolling) improved to -0.7x in Q3 2024. We have updated our investment case one-pager after the Q3 2024 results.

Today, our SaaS newsletter for September has been sent out. Overall, September was less eventful across the SaaS sector, yet we can look back at the global/US SaaS sector’s Q2 earnings season before we move into the Q3 earnings season. Looking at the median ARR valuation multiple, this is now 6.1x by the end of September (6.2x by the end of August) for the global/US SaaS sector and 3.1x ARR by the end of September 2024 (3.2x ARR by the end of August) for the Danish SaaS sector.

Yesterday, our SaaS newsletter covering news and Q2/H1 financial reports from August was sent out. Looking overall at the global SaaS sector, the growth outlook is still challenged. However, we have observed some relief for the Danish SaaS companies with optimism into H2 2024. Our full blog shows the ARR growth YoY and EBITDA developments for H1 2024 vs. H1 2023 across the Danish SaaS sector.  

Today, we have sent out the HCA SaaS newsletter for July 2024, providing insights into a very eventful July across the Danish SaaS sector – the Q2 earnings season will take off later in August.

This year, the software (SaaS) sector has not ridden the AI wave. Some investors have raised the question of whether AI could harm the growth prospects for the software sector, while others dismiss this thesis due to software companies' strong use cases. At our online SaaS seminar this Tuesday, we got interesting insights from both SaaS investors and SaaS companies.

Mark your calendar on 11 June 2024 at 11.55 where we have the pleasure to invite you to our annual virtual SaaS seminar.

Today, we have sent out the HCA SaaS newsletter for May 2024 which provides a status for the year following the Q1 2024 results and comments about the current market environment. The median ARR multiple increased slightly to 3.6x ARR in May for the Danish SaaS sector, while the global/US SaaS sector is trading at 5.9x ARR, now the lowest level since 2013 according to data from The SaaS Capital Index. Remember to sign up for our SaaS seminar on Tuesday with both SaaS investors and management members from Danish SaaS companies.

Today, we are publishing our latest Software-as-a-Service (SaaS) sector report, covering the recent news and thematics from the SaaS sector with insights into our comprehensive data set over Danish-listed SaaS companies.

The HCA SaaS newsletter for March 2024 has been sent out today. The newsletter covers the recent news from the Danish SaaS sector and insights from the US SaaS sector, including benchmark data and valuation perspectives.