Nordic Application Software Benchmark Report

Together with our Globalscope partner Silverpeak, Impello has for the first time published the “Nordic Application Software Benchmark Report” with a review of key company valuation metrics in the Nordic, UK, European and US markets. The report reviews the development from 2015 to Q4 2020.

Our data for 327 publicly listed application software companies show that the Nordic software companies in Q4 2020 are valued at a median EV/Revenue multiple of 7.9x, compared to 9.3x in the US and only 3.6x and 3.1x in UK and Rest of Europe.

– Even though the US still observe the highest revenue multiples, the Nordics has strong growth and has nearly closed the gap over the recent years, says Bjørnar Reitan, partner at Impello.

With a median EV/EBITDA multiple of 38.9x the Nordics report a higher multiple than the US (35.8x), and significantly stronger multiples compared to UK and Rest of Europe with 23.3x and 22.9x. Our analysis shows that the change in multiples since the outburst of Covid-19 for the Nordic companies are the strongest of the segments with a change of 4.4x EV/Revenue and 18.7x EV/EBITDA from March/April until the end of Q4 2020.

– There are several interesting findings in our report, and I would especially like to highlight the strong and positive development in the number of Nordic software companies. The massive growth of 176 % since 2015 proves that the Nordic market is gradually succeeding in producing highly attractive software companies with an international reach, says Reitan.

Impello and Silverpeak will continue to monitor and make visible the development in the Nordic markets on a quarterly basis.

Read the complete report here.