SaaS (Software-as-a-Service)

SaaS describes software provided as a cloud-based service on a subscription model. The model generates predictable, recurring revenue (ARR/MRR) and offers high scalability at comparatively low marginal costs.

SaaS companies are regularly valued in the market at above-average multiples, provided that central KPIs such as growth, net revenue retention, gross margin and churn paint a positive picture.