2021 KBCM SaaS Survey - forentrepreneurs.com

1 2021 Private SaaS Company Survey112 THANNUALSAAS Survey RESULTS20212021 Private SaaS Company Survey2 KBCM TECHNOLOGY GROUP 2021 PRIVATE SAAS 12thANNUALCOMPANY Survey This report provides an analysis of the results of a Survey of private SaaS companies which KBCM Technology Group s software investment banking team conducted in June and July 2021. Results include responses from senior executives of over 350 companies. Representative statistics on the Survey participants: $ median 2020 Ending ARR1, with 91 companies >$25MM Median organic growth in ARR in 2020 was ~31% and ~24% for companies >$25MM Median employees (FTEs): ~75 Median customer count: ~280 ~$28K median initial annual contract value 67% headquartered in the ARR is defined as committed annual recurring revenue run-rate2 For companies >$5M in Multiple of ARR in capital raise or change of control event since Jan. 20202see Slide 63for results36%Median 2021E Organic Growth Forecast2 Compared to 28% in 2020 Asee Slide 18for results ValuationGrowth ForecastsExit ExpectationsNew This Year!

2 Exit2 20 Median Growth RatePublic Listing40%Sponsor Acquisition22%Strategic Acquisition21%Remain Private15%see Slide 66for results 2021 Private SaaS Company Survey3 Customer Acquisition Costs2020 Median CAC Ratios12020 Blended CAC RatioFully-loaded S&M spend to acquire $1 of new ARR across all customers$ New Customer CAC RatioFully-loaded S&M spend to acquire $1 of new ARR from a new customer$ Existing Customer CAC RatioFully-loaded S&M spend to acquire $1 of ARR from upsells and expansions$ Year-End ARR2020 Year-End ARRSUMMARY VIEW OF MEDIAN 2020 SAASMETRICS PERFORMANCE2020 Gross Dollar Churn2020 Upsell & Expansion BookingsExcluding Companies <$5MM in 2020 Ending ARR(~13% of 2019year-end ARR)2020 New LogoBookings(~25% of 2019year-end ARR)(~15% of 2019year-end ARR)Median 2020 OrganicARR Growth = 28% 1 Excluding companies with less than $5M of S&M spend2 All margins based on 2020 GAAP revenue, adjusted for stock-based compensation add-back3 Gross margin determined based on including customer support in COGSR espondents: Median 2020 Organic ARR Growth: 189, 2020 New Logo Bookings: 189, 2020 Upsell Bookings: 189, 2020 Gross Dollar Churn: 189, Customer Acquisition Costs: 1012020 Median Margins2 Subscription Gross Margin80%Total Gross Margin373%Sales & Marketing as a % of Revenue35%Free Cash Flow Margin0%Margin Profile2021 Private SaaS Company Survey4 Survey PARTICIPANT COMPOSITION2021 Private SaaS Company Regions Median 2020 Ending ARR($ in MM)Median 2020 Organic Growth Rate% of Revenue.

3 InternationalSilicon Valley60$ / New / 23%5%Southeast 24%1%New 32%15%Colorado 40%0%Southern 28%0% 38%4% 8%18%Other 44%0%Total $ LocationsMedian 2020 Ending ARR($ in MM)Median 2020 Organic Growth Rate% of Revenue:Home Region / North America / RoW)Europe55$ / 25% / 21% / 85% / 15%Australia / New / 6% / 59%Latin America / 0% / 0%Asia / 13% / 45% / 60% / 20% East Locations118$ / 38% / 21%TOTAL354$ PARTICIPANT GEOGRAPHY (HQ)# of Companies21 Self-reportedLocations based on Company headquarters# of Companies2021 Private SaaS Company Survey6231020304634253441351812614605101 520253035404550< $500K$500K-750K$ $ $ $ $ $10M-15M$15M-25M$25M-40M$40M-60M$60M-75M$75M-100M$100M-200M> $200 MNumber of Companies2020 Ending ARR2310203046342534413518126146051015202 53035404550< $500K$500K-750K$ $ $ $ $ $10M-15M$15M-25M$25M-40M$40M-60M$60M-75M$75M-100M$100M-200M> $200 MNumber of Companies2020 Ending ARRM edian = $ BY ENDING ARR2020 ARR: Contracted Annual Recurring Revenue at Year-End 2020354 respondents2021 Private SaaS Company Survey7 PARTICIPANTS BY SOFTWARE CATEGORYC ategory examples: Horizontal Application -CRM, ERP, HCM.

4 Vertical Application -Health Care, Real Estate; Infrastructure Management Software -APM, DevOps; Communications -CPaaS, UCaaS345 respondents14010325222114128020406080100 120140160 HorizontalApplicationVertical MarketApplicationInfrastructureManagemen tSoftwareCyber SecurityDataInfrastructureFinTechCommuni cationseCommerceEnablementNumber of CompaniesSofware Category2021 Private SaaS Company Survey8 PARTICIPANT BY OWNERSHIP STATUS348 respondents18694680204060801001201401601 80200VC-backed(No Majority Owner)Independent and / or BootstrappedSponsor / PE-backed(Controlled)Number of CompaniesOwnership Status2021 Private SaaS Company Survey92020 GROWTH2021 Private SaaS Company Survey1017%14%15%21%15%15%13%15%72%53%58 %35%38%38%56%50%37%25%41%23%25%25%20%0%1 0%20%30%40%50%60%70%80%Sub $5M$5M-10M$10M-15M$15M-20M$20M-30M$30M-5 0M$50M-100 MOver $100M2020 Organic ARR Growth2020 Ending ARR >$5MM Median = 28%Overall Median= 31%2020 ORGANIC ARR GROWTH75thpercentile25thpercentileMedian 103%260 total respondents.

5 Sub $5M: 71, $5M-10M: 52, $10M-15M: 28, $15M-20M: 22, $20M-30: 21, $30M-50M: 29, $50M-100M: 19, Over 100M: 18 Sub $5M2021 Private SaaS Company Survey1192438302216715541432324051015202 5303540 Number of Companies2020 Organic GrowthORGANIC ARR GROWTH HISTOGRAME xcluding Companies <$5MM in 2020 Ending ARRM edian = 28%189 total respondentsMedian ARR growth of 28% aligns with Fall 2020 SaaS Survey COVID Edition results. Historically, median growth for participants in our surveys has been in the 35-40% range, underlining COVID s impact on SaaS businesses in Private SaaS Company Survey12 HOW FAST DID YOU GROW ORGANICALLY IN 2020?Scatter View of Companies $5MM in 2020 Ending ARRNote: Excludes 9 companies with negative organic ARR growth180 Respondents0%10%20%30%40%50%60%70%80%90% 100%200%+$5M$10M$20M$30M$40M$50M$60M$70M $80M$90M$100M$150M2020 Organic ARR Growth2020 Ending ARR2021 Private SaaS Company Survey13 Note: Excludes 9 companies with negative organic ARR growth164 Respondents2020 GROWTH VS.

6 BURN TRADEOFFS catter View of Companies $5MM in 2020 Ending ARRFree Cash Flow Margin (100%)0% 30%(66%)(30%)0%10%20%30%40%50%60%70%80%9 0%100%2020 Organic ARR Growth200%+$5M$10M$20M$30M$40M$50M$60M$7 0M$80M$90M$100M$150M2020 Ending ARR2021 Private SaaS Company Survey1417%41%26%24%17%14%11%14%78%53%90 %75%53%46%46%52%50%43%39%32%25%25%25%17% 0%20%40%60%80%100%Cyber SecurityFinTechCommunicationsDataInfrast ructureInfrastructureManagementSoftwareV ertical MarketApplicationHorizontalApplicationeC ommerceEnablement2020 Organic ARR GrowthSoftware Category2020 ARR GROWTH BY SOFTWARE CATEGORYE xcluding Companies <$5MM in 2020 Ending ARRM edian = 28%188 total respondents; Cyber Security: 13, FinTech: 7, Communications ( CPaaS, UCaaS): 7, Data Infrastructure: 15, Infrastructure Management Software ( APM, DevOps): 15, Vertical Application ( Health Care, Real Estate): 45, Horizontal Application ( CRM, ERP, HCM): 80, Ecommerce Enablement: 675thpercentile25thpercentileMedian2021 Private SaaS Company Survey1516%16%15%19%17%10%11%80%48%40%45 %62%43%36%50%33%33%30%29%22%20%0%20%40%6 0%80%100%Security / CISOI ndependentproprietor / Smallbusiness ownerCFO / Finance /LegalProduct / Dev /EngineeringIT / Operations / CIOHRS ales & Marketing2020 Organic ARR GrowthCustomer Profile2020 ARR GROWTH BY CUSTOMER PROFILEE xcluding Companies <$5MM in 2020 Ending ARRNote: Consumer category removed due to low number of total respondents.

7 Security/CISO: 11, Independent Proprietor/Small Business Owner: 12, CFO/Finance/Legal: 17, Product Dev/Engineering: 11 IT/Operations/CIO: 67, HR: 20, Sales & Marketing: 45 Median = 28%75thpercentile25thpercentileMedianInd ependent Proprietor / Small Business Owner2021 Private SaaS Company Survey1614%20%27%25%33%37%38%49%45%48%48 %58%60%62%29%33%31%33%55%48%53%0%10%20%3 0%40%50%60%70%$5M-10M$10M-15M$15M-20M$20 M-30M$30M-50M$50M-100 MOver $100M% New ARR added in 2020 form Upsells & Expansions2020 Ending ARR182 total respondents; $5M-10M: 49, $10M-15M: 27, $15M-20M: 21, $20M-30M: 21, $30M-50M: 28, $50M-100M: 19, Over $100M: 17 RELIANCE ON UPSELLS & EXPANSIONS IN 2020 Excluding Companies <$5MM in 2020 Ending ARRM edian = 36%75thpercentile25thpercentileMedianAs seen in previous surveys, larger companies tend to rely more heavily on upselling existing Private SaaS Company Survey172021 GROWTH FORECAST2021 Private SaaS Company Survey1858%40%44%30%31%29%34%0%10%20%30% 40%50%60%$5M-10M$10M-15M$15M-20M$20M-30M $30M-50M$50M-100 MOver $100M2021 Median Growth Estimates2020 Ending ARR189 total respondents.

8 $5M-10M: 52, $10M-15M: 28, $15M-20M: 22, $20M-30: 21, $30M-50M: 29, $50M-100M: 19, Over $100M: 182021 GROWTH FORECASTE xcluding Companies <$5MM in 2020 Ending ARRM edian = 36%2021 Private SaaS Company Survey1919 4 8 10 25 5 21 15 23 15 13 8 22 - 5 10 15 20 25 30 More than(20%)(20 - 15%)(15 - 10%)(10 - 5%)(5 - 1%)NoChange1 - 5%5 - 10%10 - 15%15 - 20%20 - 25%25 - 30%More than30%Number of CompaniesChange from 2020 to 2021 Growth2021 GROWTH FORECAST: ACCELERATION VS DECELERATIONM edian Absolute Change in Growth= Companies <$5MM in 2020 Ending ARRNote: Absolute Change in Growth is calculated as the difference between 2020 Ending ARR Growth % and 2021 Forecasted Growth %188 total respondentsParticipants are generally more optimistic about 2021, reflected in the median forecast absolute change in growth rate of from 2020 to 2021. 2021 Private SaaS Company Survey20 Median = (0%)(1%)(4%)(5%)(3%)(1%)1%3%5%7%9%11%13% 15%InfrastructureManagementSoftwareHoriz ontalApplicationCyber SecurityDataInfrastructureVertical MarketApplicationeCommerceEnablementComm unicationsFinTechMedian Change from 2020 to 2021 GrowthSaaS Category2021 GROWTH FORECAST: ACCELERATION VS DECELERATION BY SOFTWARE CATEGORYE xcluding Companies <$5MM in 2020 Ending ARR25%25%50%32%25%17%39%43%Median 2020 Growth188 total respondents.

9 Cyber Security: 13, FinTech: 7, Communications: 7, Data Infrastructure: 15, Infrastructure Management Software: 15, Vertical Application: 45, Horizontal Application: 80, eCommerce Enablement: 62021 Private SaaS Company Survey2119%12%9%7%4%3%2%0%2%4%6%8%10%12% 14%16%18%20%Product / Dev /EngineeringHRSales & MarketingIT / Operations /CIOS ecurity / CISOI ndependentproprietor / Smallbusiness ownerCFO / Finance /LegalMedian Change from 2020 to 2021 GrowthCustomer Profile2021 GROWTH FORECAST: ACCELERATION VS DECELERATION BY CUSTOMER PROFILEM edian = Companies <$5MM in 2020 Ending ARR183 total respondents; Security/CISO: 11, Independent Proprietor/Small Business Owner: 12, CFO/Finance/Legal: 17, Product Dev/Engineering: 11 IT/Operations/CIO: 67, HR: 20, Sales & Marketing: 45 Note: Consumer category removed due to low number of 2020 Growth30%22%29%50%33%33%20%2021 Private SaaS Company Survey22 RETENTION AND CHURN2021 Private SaaS Company Survey2311132019261724710935905101520253 0<3%3-5%5-8%8-10%10-13%13-15%15-20%20-25 %25-30%30-35%35-40%40-45%45%+# of Companies2020 Annual Gross Dollar ChurnANNUAL GROSS DOLLAR CHURN Excluding Companies <$5MM in 2020 Ending ARRM edian = a dollar basis, what percentage of ARR contracted as of 12/31/19, churned during 2020?

10 (Excluding benefits of upsells and expansions)Respondents: 1732021 Private SaaS Company Survey2416223528202071705101520253035400 %0-5%5-10%10-15%15-20%20-25%25-30%Over 30%# of Companies2020 Non-Renewal RateANNUAL NON-RENEWAL RATEE xcluding Companies <$5MM in 2020 Ending ARROn a dollar basis, what percentage of ARR up for renewal during 2020 did not renew? (Excluding benefits of upsells and expansions)Median = : 1652021 Private SaaS Company Survey2541145410212527281893251320510152 02530<60%60-65%65-70%70-75%75-80%80-85%8 5-90%90-95%95-100%100-105%105-110%110-11 5%115-120%120-125%125-130%130-135%135-14 0%140-145%145-150%150%+# of Companies100%+ Net Retention (upsells / expansionsgreater than churn)Net Churn (churn greater thanupsells / expansions)ANNUAL NET DOLLAR RETENTION FROM EXISTING CUSTOMERSE xcluding Companies <$5MM in 2020 Ending ARRHow much did your existing ARR base at the end of 2020 expand or contract, adding upsells and expansions from existing customers, subtracting gross dollar churn?