SaaS benchmarking data can provide insights on relative performance of financial, performance, and operating metrics

Nomad Data
July 21, 2023
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Nomad Data has partnered with the world’s leading SaaS benchmarking platform that helps technology companies and their investors find efficient new growth.

Using normalized and anonymized data from 1,000+ leading private technology brands, including 70% of US-based SaaS IPOs in the last 10 years, and 18,000 public firms, our partner provides benchmarks for more than 300 financial, performance, and operating metrics via a secure cloud-based platform. These insights allow SaaS/software companies, private equity firms, and investor organizations to develop strategies, plans, budgets, and scorecards underpinned by data and insights.

Benchmark your way to growth

In today’s tightened economic environment, SaaS/software companies and their investors are increasingly focused on cost savings, efficient growth models, and of course, their valuations. Our partner’s market-leading benchmarking data has been a proven growth driver for over 15 years.

Performance benchmarking gives companies and investors insights into exactly where they stand in comparison to their peers and uncovers potential areas for improvement and cost savings.

Companies that benchmark with our partner’s platform for 3+ years improved EBITDA on average 32% while growing revenue and improving median revenue growth rates during the same period.

How benchmarking affects company and portfolio valuations

To give a concrete example of the impact performance benchmarking has on valuations, our partner highlights a recent due diligence case by the leading strategy consulting firm for private equity. The target company’s lack of a renewal rate process – a standard SaaS metric tracked within our benchmarking partner’s platform – led to higher churn, lower on-time renewal rates impacting cash flow, and ultimately a lower valuation for the company.

Companies and investors that implement benchmarking as a continuous improvement process are required to collect and process the data needed to track their metrics, resulting in knowing exactly where they stand, identifying areas for improvement, and making the changes needed to achieve their growth and revenue targets – as well as higher valuations. Multiple industry studies show that performance benchmarking, as a sustained management practice, increases company value by 12-15%.

Companies and investors who do not benchmark run the risk of not knowing where they stand against their competitors and remaining blind to key areas for change, growth, and cost savings, which can greatly impact their valuations in the long term.

With Nomad Data you can focus on specifying the use case you’re trying to solve for, and we’ll connect you with this industry leader if their data can inform on it. Some sample use cases identified for this data include:

  • Evaluate your team’s go-to-market strategy and playbook development and compare with peers and market leaders.
  • Identify key areas where your team can build cost management/cost reduction plans by benchmarking with peers.
  • Assess productivity by benchmarking key drivers of sales and customer success such as headcount, compensation, overhead expenses, and close rates.
  • Conduct due diligence with datapoints from over 300 SaaS/software benchmarks pulled from both private and public companies.
  • Optimize and validate R&D investment and organization by comparing key expense and efficiency metrics.

To be connected with this industry leader for your data needs, please log in to Nomad Data and share your specific use case.

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