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Software & Technology Enabled Services: Industry Update | August 2024

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August 28, 2024

  • As we head towards the end of Q3, we can expect continued robust growth in Software & Technology Enabled Services, driven by the ongoing digital transformation across industries, which will continue to push businesses into adopting advanced technological solutions to enhance efficiency, improve security, and deliver better customer experiences
  • Investment in U.S. technology continues to be heavily focused on Software. In the second quarter of 2024, Software accounted for approximately 41% of all deals in the U.S., and around 40% of total U.S. deals year-to-date. Over the past year, SaaS and AI/ML have remained the leading verticals

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EBITDA Margins

Revenue Growth

  • Increased focus on financial stability and operational efficiency is anticipated to yield improved EBITDA margins going forward
  • Multiples are expected to stabilize in 2024 and 2025 after experiencing hypergrowth in 2023. This suggests improved operational efficiency and may reflect adjustments in growth expectations and market conditions
  • We anticipate heightened regulatory scrutiny of the tech sector by governments worldwide, prompting firms to prioritize data protection, mitigating harm, ethical AI, and sustainability efforts

Enterprise Value / EBITDA

Enterprise Value / Revenue

Price / Earnings

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For more information, please reach out to Kathleen Lauster, CFA and Matthew Lapish.

© Copyright 2024. The views expressed herein are those of the author(s) and not necessarily the views of Ankura Consulting Group, LLC., its management, its subsidiaries, its affiliates, or its other professionals. Ankura is not a law firm and cannot provide legal advice.