SEG-Internet Index Infrastructure

SEG’s Monthly Flash Reports track the financial performance and valuations of approximately 300 software companies, categorized in nearly 30 product categories across the on-premise software, SaaS and Internet sectors.  This post highlights the performance of the SEG-Internet Index Infrastructure product category as shown in the SEG December Monthly Flash Report.  To view the performance of dozens of other product categories, download the latest complimentary Monthly Flash Report here: http://www.softwareequity.com/research_flash_reports.aspx

In the month of December, the Infrastructure category achieved a median EV/Revenue multiple of 1.7x, TTM Revenue Growth of 29.0%, and EBITDA Margin of 15.7%. Notable companies outperforming their respective category include:

  1. On an EV/Revenue multiple basis, BroadSoft Inc., VeriSign Inc., and Rackspace Hosting outperformed the category with multiples of 6.5x, 6.3x, and 6.0x, respectively.
  2. On a TTM Revenue Growth basis, EarthLink Inc., Broadsoft Inc., and ChinaCache International outperformed the category with a revenue growth of 82.4%, 68.4%, and 63.1%, respectively.
  3. On a TTM EBITDA Margin basis, VeriSign Inc., Equinix Inc., and Akamai Technologies Inc. outperformed the category with a margin of 50.2%, 40.6%, and 38.6%, respectively.

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