Within enterprise software, we continue to see headline transactions most notably focused on cloud enablement, security, and AI / machine learning. Software players in these specific sectors have attracted premium offers and are being rewarded for posting double digit revenue growth rates.
- Current revenue growth rate exceeds the average of the last 3 years, indicating that market momentum is increasing
- Current gross profit margin is less than the average of the last 3 years gross profit margins, indicating customer pricing power
- Current EBITDA margin is less than the average of the last 3 years EBITDA margins, which may signal further consolidation