What are typical EBITDA margins for "On-Demand" software firms?

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What are typical EBITDA margins for "On-Demand" software firms?

I'm looking for general ranges for SaaS companies that have reached some level of maturity...20%? 30%? Higher?

2006-10-02 05:20:06 · 2 answers · asked by PVD 1 in Business & Finance ➔ Investing

2 answers

If you provided a list of companies you are interested in, it would be much easier to look for data...

There is also considerable variation between companies; Paychex has operating margins in the 35-40% region, while ADP's operating margins in the last four years have been between 16% and 22%.

2006-10-02 05:40:46 · answer #1 · answered by NC 7 · 0⤊ 0⤋

I would expect a mature firm to have an EBITDA margin of at least 40%

2006-10-02 05:24:00 · answer #2 · answered by Anonymous · 0⤊ 0⤋