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So with public SaaS companies continuing to grow, but revenue multiples often at relative lows, it can make sense in some cases to “go private”, invest in more growth for a few years, and try to IPO again down the road. Qualtrics did it, nCino just did it, and the latest is Squarespace. They are going private at an almost $7 Billion valuation.
Now that may sound like a lot, and it is a lot, but less so a multiple of revenue and ARR. Squarespace is at $1.1B+ in ARR, growing almost 20% with strong margins — and even with a 30% premium to take it public, it’s still been acquired for about 6x ARR.
Squarespace hasn’t done everythiing right, but it’s a pretty darn good one. One I’d hoped would be worth more than 6x ARR.
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