Software Index
State of the Market
Salesforce concluded fiscal year 2026 with continued growth, reporting total revenue of $41.5 billion, a 10% year-over-year increase. Notably, Agentforce reached $800 million in annual recurring revenue, up 169%. This shift toward AI agents is beginning to change how software value is measured beyond traditional seat-based licensing. The company has processed more than 19 trillion tokens to date and delivered 2.4 billion agentic work units. More than 60% of Agentforce and Data 360 bookings in the fourth quarter came from existing customer expansion, demonstrating a repeatable model for capturing value through autonomous enterprise outcomes rather than tool provision alone.
The U.S. economy showed mixed signals, with headline inflation rising to 3.3% year over year as growth momentum cooled. This development has been driven partially by energy price pressures stemming from the Iran conflict, with Brent crude hovering near $100 per barrel for weeks. The associated rise in gasoline prices has increased costs for logistics-heavy businesses and weighed on discretionary spending, particularly for lower-income households.
Recent revisions to domestic output underscore a cooling trend, with real GDP growth in Q4 2025 at 0.5% annualized. This deceleration indicates that recovery momentum has moderated.
The March 2026 jobs report sent a mixed signal, with nonfarm payrolls rising by 178,000—above expectations—following a revised decline in February. The labor market continues to reflect low hiring and low separation rates, and the unemployment rate remained at 4.3 percent.
Monetary policy remains in a holding pattern, with the Federal Open Market Committee maintaining the federal funds rate target range at 3.5% to 3.75% at its March meeting. Participants continue to evaluate the balance between energy-driven price pressures and growth risks, with the median projection for the year-end rate near 3.4% and some shift toward fewer rate cuts.
The trade landscape continues to shift toward higher protectionism. In the United States, authorities implemented an additional 10% tariff on imports under Section 122 following recent legal developments. In addition, a new Section 232 action imposes a 100% tariff on certain patented pharmaceutical products and ingredients to encourage domestic production, with implementation phased over coming months. This aims to support onshoring of the drug supply chain.
Looking ahead, the U.S. macro environment faces persistent headwinds from energy-driven inflation and moderating growth. With the Federal Reserve holding the federal funds rate and projecting limited easing, the cost of capital is likely to remain elevated. These factors raise the risk of supply disruptions and pressure on margins for import-reliant sectors in the second quarter. Developments over the coming months will depend heavily on the trajectory of Middle East tensions and the pace of trade policy implementation.
Median
NTM Rev Multiple
3.1x
Top 10*
NTM Rev Multiple
9.4x
Median
NTM Rev Growth
12%
Top 10*
NTM Rev Growth
25%
Median
Gross Margin
75%
Top 10*
Gross Margin
72%
*Median multiple, growth rate, and gross margin for the top 10 companies based on EV/NTM Revenue.
Valuation Trends
Index Leaders
Top 10 companies in the Software Index based on current EV / NTM Revenue Multiple.
|
Company
|
EV/NTM Rev
|
EV ($MM)
|
LTM Rev $MM
|
NTM Rev Growth
|
LTM Rev Growth
|
Gross Margin
|
Operating Margin
|
FCF Margin
|
|---|---|---|---|---|---|---|---|---|
| Palantir Technologies Inc. | 47.2x | 343,007 | 4,475 | 62.3% | 56% | 82% | 32% | 28% |
| Cloudflare, Inc. | 25.7x | 72,045 | 2,168 | 29.2% | 30% | 75% | -9% | 18% |
| CrowdStrike Holdings, Inc. | 16.0x | 94,648 | 4,812 | 22.8% | 22% | 75% | -5% | 34% |
| Shopify Inc. | 10.1x | 148,060 | 11,556 | 26.9% | 30% | 48% | 16% | 11% |
| DigitalOcean Holdings, Inc. | 9.5x | 10,363 | 901 | 21.4% | 15% | 60% | 17% | 14% |
| Datadog, Inc. | 9.4x | 38,576 | 3,427 | 20.3% | 28% | 80% | -1% | 26% |
| Samsara Inc. | 8.8x | 17,239 | 1,619 | 21.8% | 30% | 77% | -3% | 18% |
| Snowflake Inc. | 8.5x | 50,035 | 4,684 | 26.3% | 29% | 67% | -31% | 34% |
| Clearwater Analytics Holdings, Inc. | 8.2x | 7,740 | 731 | 29.3% | 62% | 67% | 0% | 27% |
| Microsoft Corporation | 7.9x | 2,782,561 | 305,453 | 15.1% | 17% | 69% | 47% | 18% |
| JFrog Ltd. | 7.8x | 4,922 | 532 | 18.0% | 24% | 77% | -16% | 33% |
| The Descartes Systems Group Inc. | 7.2x | 5,802 | 729 | 10.9% | 12% | 77% | 30% | 32% |
| Figma, Inc. | 6.9x | 9,432 | 1,056 | 29.9% | 41% | 82% | -122% | 71% |
| Manhattan Associates, Inc. | 6.7x | 7,699 | 1,081 | 6.0% | 4% | 56% | 26% | 29% |
| Oracle Corporation | 6.7x | 551,638 | 64,076 | 28.1% | 15% | 67% | 32% | -31% |
| ServiceNow, Inc. | 6.4x | 101,707 | 13,278 | 20.4% | 21% | 78% | 15% | 37% |
| MongoDB, Inc. | 6.0x | 17,348 | 2,464 | 17.5% | 23% | 72% | -5% | 19% |
| Zscaler, Inc. | 5.8x | 20,911 | 3,001 | 20.9% | 24% | 77% | -4% | 34% |
| OneStream, Inc. | 5.6x | 3,980 | 602 | 18.3% | 23% | 69% | -16% | 21% |
| ServiceTitan, Inc. | 5.1x | 5,668 | 961 | 16.2% | 24% | 70% | -16% | 16% |
| Waystar Holding Corp. | 4.7x | 6,026 | 1,099 | 17.1% | 17% | 68% | 24% | 32% |
| Dynatrace, Inc. | 4.5x | 9,927 | 1,932 | 15.3% | 18% | 82% | 13% | 24% |
| EverCommerce Inc. | 3.9x | 2,442 | 589 | 5.3% | 5% | 78% | 10% | 15% |
| Salesforce, Inc. | 3.9x | 180,442 | 41,525 | 11.1% | 10% | 78% | 21% | 40% |
| International Business Machines Corporation | 3.9x | 277,744 | 67,535 | 5.4% | 8% | 58% | 19% | 21% |
| Okta, Inc. | 3.7x | 11,821 | 2,919 | 9.1% | 12% | 77% | 5% | 29% |
| Adobe Inc. | 3.7x | 98,024 | 24,453 | 8.7% | 11% | 89% | 37% | 39% |
| Qualys, Inc. | 3.5x | 2,490 | 669 | 7.8% | 10% | 83% | 33% | 39% |
| Pegasystems Inc. | 3.5x | 6,845 | 1,746 | 13.7% | 17% | 76% | 16% | 33% |
| Netskope, Inc. | 3.4x | 2,993 | 709 | 23.4% | 32% | 68% | -92% | 46% |
| Klaviyo, Inc. | 3.3x | 4,987 | 1,234 | 22.1% | 32% | 75% | -5% | 19% |
| Q2 Holdings, Inc. | 3.3x | 2,865 | 795 | 10.3% | 14% | 54% | 5% | 24% |
| Paylocity Holding Corporation | 3.2x | 5,792 | 1,680 | 7.0% | 12% | 69% | 20% | 23% |
| Dropbox, Inc. | 3.2x | 7,971 | 2,521 | -0.9% | -1% | 80% | 27% | 34% |
| Workiva Inc. | 3.2x | 3,295 | 885 | 17.3% | 20% | 78% | -5% | 16% |
| Zoom Communications, Inc. | 3.1x | 15,930 | 4,869 | 4.2% | 4% | 77% | 23% | 40% |
| Navan, Inc. | 3.1x | 2,726 | 702 | 23.6% | 31% | 71% | -28% | 24% |
| SentinelOne, Inc. | 3.1x | 3,769 | 1,001 | 20.0% | 22% | 74% | -30% | 28% |
| C3.ai, Inc. | 3.1x | 662 | 307 | -30.9% | -16% | 43% | -152% | 4% |
| Twilio Inc. | 3.1x | 17,675 | 5,067 | 12.1% | 14% | 49% | 3% | 19% |
| BlackLine, Inc. | 3.1x | 2,385 | 700 | 9.3% | 7% | 75% | 6% | 19% |
| HubSpot, Inc. | 3.1x | 11,432 | 3,131 | 18.1% | 19% | 84% | 0% | 21% |
| Box, Inc. | 3.0x | 3,847 | 1,177 | 8.3% | 8% | 79% | 8% | 30% |
| Workday, Inc. | 3.0x | 31,774 | 9,552 | 11.7% | 13% | 76% | 11% | 32% |
| Constellation Software Inc. | 3.0x | 40,352 | 11,623 | 16.7% | 15% | 38% | 17% | 24% |
| Paycom Software, Inc. | 2.8x | 6,181 | 2,052 | 6.7% | 9% | 87% | 28% | 13% |
| Braze, Inc. | 2.7x | 2,350 | 738 | 20.3% | 24% | 67% | -18% | 24% |
| Atlassian Corporation | 2.6x | 17,650 | 5,760 | 20.0% | 20% | 84% | -2% | 27% |
| ZoomInfo Technologies Inc. | 2.5x | 3,170 | 1,250 | 0.8% | 3% | 87% | 21% | 31% |
| DocuSign, Inc. | 2.5x | 8,536 | 3,220 | 8.4% | 8% | 80% | 9% | 37% |
| SPS Commerce, Inc. | 2.4x | 1,937 | 752 | 6.7% | 18% | 69% | 16% | 17% |
| Elastic N.V. | 2.4x | 4,518 | 1,677 | 13.6% | 17% | 76% | -2% | 24% |
| Progress Software Corporation | 2.4x | 2,343 | 988 | 0.8% | 22% | 85% | 18% | 29% |
| Appian Corporation | 2.3x | 1,896 | 727 | 11.5% | 18% | 73% | 2% | 14% |
| GitLab Inc. | 2.2x | 2,467 | 955 | 16.6% | 26% | 87% | -7% | 30% |
| Open Text Corporation | 2.1x | 10,860 | 5,180 | 0.6% | -4% | 76% | 21% | 24% |
| BILL Holdings, Inc. | 2.0x | 3,436 | 1,552 | 12.2% | 12% | 84% | -5% | 8% |
| VTEX | 1.9x | 503 | 241 | 11.9% | 6% | 77% | 8% | 14% |
| Tenable Holdings, Inc. | 1.8x | 1,958 | 999 | 7.2% | 11% | 78% | 2% | 29% |
| Asure Software, Inc. | 1.8x | 294 | 141 | 14.1% | 17% | 68% | -6% | 1% |
| Upland Software, Inc. | 1.8x | 354 | 217 | -7.7% | -21% | 75% | 8% | 20% |
| RingCentral, Inc. | 1.7x | 4,485 | 2,515 | 4.5% | 5% | 71% | 5% | 27% |
| DoubleVerify Holdings, Inc. | 1.7x | 1,379 | 748 | 9.4% | 14% | 82% | 11% | 24% |
| Amplitude, Inc. | 1.7x | 669 | 343 | 15.1% | 15% | 74% | -28% | 16% |
| Freshworks Inc. | 1.6x | 1,543 | 839 | 14.0% | 16% | 85% | 2% | 19% |
| Docebo Inc. | 1.6x | 432 | 243 | 10.7% | 12% | 80% | 12% | 3% |
| Via Transportation, Inc. | 1.6x | 866 | 434 | 25.2% | 29% | 40% | -18% | -3% |
| Asana, Inc. | 1.6x | 1,339 | 791 | 8.0% | 9% | 89% | -21% | 22% |
| eGain Corporation | 1.5x | 137 | 91 | 1.3% | 2% | 72% | 9% | 19% |
| monday.com Ltd. | 1.4x | 2,012 | 1,232 | 18.4% | 27% | 89% | 0% | 21% |
| ON24, Inc. | 1.3x | 185 | 139 | -0.9% | -6% | 75% | -23% | 19% |
| Enghouse Systems Limited | 1.3x | 470 | 365 | -3.9% | -2% | 63% | 18% | 21% |
| Rackspace Technology, Inc. | 1.3x | 3,419 | 2,686 | -1.7% | -2% | 19% | -2% | 11% |
| Sprinklr, Inc. | 1.2x | 1,037 | 857 | 1.6% | 8% | 67% | 7% | 17% |
| Yext, Inc. | 1.1x | 498 | 447 | 1.9% | 6% | 75% | 0% | 7% |
| Five9, Inc. | 1.0x | 1,269 | 1,149 | 9.2% | 10% | 55% | 4% | 23% |
| PagerDuty, Inc. | 1.0x | 486 | 493 | 0.1% | 5% | 85% | 1% | 23% |
| Kaltura, Inc. | 0.9x | 165 | 181 | 0.9% | 1% | 71% | -2% | 16% |
| Riskified Ltd. | 0.8x | 308 | 345 | 9.9% | 5% | 52% | -10% | 13% |
| Domo, Inc. | 0.7x | 225 | 319 | 0.8% | 1% | 75% | -11% | 18% |
| Commerce.com, Inc. | 0.7x | 244 | 342 | 3.1% | 3% | 79% | -1% | 12% |
| Sprout Social, Inc. | 0.6x | 299 | 458 | 7.8% | 13% | 78% | -9% | 22% |
| Expensify, Inc. | 0.2x | 24 | 142 | -4.4% | 2% | 50% | -13% | 19% |
| Top 10 Average | 15.1x | 356,427 | 33,983 | 27.5% | 32% | 70% | 6% | 23% |
| Top 10 Median | 9.4x | 61,040 | 3,951 | 24.5% | 29% | 72% | -1% | 22% |
| Overall Average | 4.4x | 61,898 | 7,923 | 12.1% | 15% | 72% | 0% | 23% |
| Overall Median | 3.1x | 3,847 | 1,001 | 11.5% | 14% | 75% | 2% | 22% |
Multiples by Growth Tranche
Valuation multiples are strongly correlated to expected growth. Scalar has selected the tranches based on current market conditions.
EV/NTM Revenue Multiple
High Growth (> 20%)
7.5x
|
|
Multiple
|
Growth
|
|---|---|---|
| Palantir Technologies Inc. | 47.2x | 62.3% |
| Figma, Inc. | 6.9x | 29.9% |
| Clearwater Analytics Holdings, Inc. | 8.2x | 29.3% |
| Cloudflare, Inc. | 25.7x | 29.2% |
| Oracle Corporation | 6.7x | 28.1% |
| Shopify Inc. | 10.1x | 26.9% |
| Snowflake Inc. | 8.5x | 26.3% |
| Via Transportation, Inc. | 1.6x | 25.2% |
| Navan, Inc. | 3.1x | 23.6% |
| Netskope, Inc. | 3.4x | 23.4% |
| CrowdStrike Holdings, Inc. | 16.0x | 22.8% |
| Klaviyo, Inc. | 3.3x | 22.1% |
| Samsara Inc. | 8.8x | 21.8% |
| DigitalOcean Holdings, Inc. | 9.5x | 21.4% |
| Zscaler, Inc. | 5.8x | 20.9% |
| ServiceNow, Inc. | 6.4x | 20.4% |
| Braze, Inc. | 2.7x | 20.3% |
| Datadog, Inc. | 9.4x | 20.3% |
EV/NTM Revenue Multiple
Average Growth (10%-20%)
3.1x
|
|
Multiple
|
Growth
|
|---|---|---|
| SentinelOne, Inc. | 3.1x | 20.0% |
| Atlassian Corporation | 2.6x | 20.0% |
| monday.com Ltd. | 1.4x | 18.4% |
| OneStream, Inc. | 5.6x | 18.3% |
| HubSpot, Inc. | 3.1x | 18.1% |
| JFrog Ltd. | 7.8x | 18.0% |
| MongoDB, Inc. | 6.0x | 17.5% |
| Workiva Inc. | 3.2x | 17.3% |
| Waystar Holding Corp. | 4.7x | 17.1% |
| Constellation Software Inc. | 3.0x | 16.7% |
| GitLab Inc. | 2.2x | 16.6% |
| ServiceTitan, Inc. | 5.1x | 16.2% |
| Dynatrace, Inc. | 4.5x | 15.3% |
| Amplitude, Inc. | 1.7x | 15.1% |
| Microsoft Corporation | 7.9x | 15.1% |
| Asure Software, Inc. | 1.8x | 14.1% |
| Freshworks Inc. | 1.6x | 14.0% |
| Pegasystems Inc. | 3.5x | 13.7% |
| Elastic N.V. | 2.4x | 13.6% |
| BILL Holdings, Inc. | 2.0x | 12.2% |
| Twilio Inc. | 3.1x | 12.1% |
| VTEX | 1.9x | 11.9% |
| Workday, Inc. | 3.0x | 11.7% |
| Appian Corporation | 2.3x | 11.5% |
| Salesforce, Inc. | 3.9x | 11.1% |
| The Descartes Systems Group Inc. | 7.2x | 10.9% |
| Docebo Inc. | 1.6x | 10.7% |
| Q2 Holdings, Inc. | 3.3x | 10.3% |
EV/NTM Revenue Multiple
Low Growth (< 10%)
1.8x
|
|
Multiple
|
Growth
|
|---|---|---|
| Riskified Ltd. | 0.8x | 9.9% |
| DoubleVerify Holdings, Inc. | 1.7x | 9.4% |
| BlackLine, Inc. | 3.1x | 9.3% |
| Five9, Inc. | 1.0x | 9.2% |
| Okta, Inc. | 3.7x | 9.1% |
| Adobe Inc. | 3.7x | 8.7% |
| DocuSign, Inc. | 2.5x | 8.4% |
| Box, Inc. | 3.0x | 8.3% |
| Asana, Inc. | 1.6x | 8.0% |
| Sprout Social, Inc. | 0.6x | 7.8% |
| Qualys, Inc. | 3.5x | 7.8% |
| Tenable Holdings, Inc. | 1.8x | 7.2% |
| Paylocity Holding Corporation | 3.2x | 7.0% |
| SPS Commerce, Inc. | 2.4x | 6.7% |
| Paycom Software, Inc. | 2.8x | 6.7% |
| Manhattan Associates, Inc. | 6.7x | 6.0% |
| International Business Machines Corporation | 3.9x | 5.4% |
| EverCommerce Inc. | 3.9x | 5.3% |
| RingCentral, Inc. | 1.7x | 4.5% |
| Zoom Communications, Inc. | 3.1x | 4.2% |
| Commerce.com, Inc. | 0.7x | 3.1% |
| Yext, Inc. | 1.1x | 1.9% |
| Sprinklr, Inc. | 1.2x | 1.6% |
| eGain Corporation | 1.5x | 1.3% |
| Kaltura, Inc. | 0.9x | 0.9% |
| Progress Software Corporation | 2.4x | 0.8% |
| ZoomInfo Technologies Inc. | 2.5x | 0.8% |
| Domo, Inc. | 0.7x | 0.8% |
| Open Text Corporation | 2.1x | 0.6% |
| PagerDuty, Inc. | 1.0x | 0.1% |
| Dropbox, Inc. | 3.2x | -0.9% |
| ON24, Inc. | 1.3x | -0.9% |
| Rackspace Technology, Inc. | 1.3x | -1.7% |
| Enghouse Systems Limited | 1.3x | -3.9% |
| Expensify, Inc. | 0.2x | -4.4% |
| Upland Software, Inc. | 1.8x | -7.7% |
| C3.ai, Inc. | 3.1x | -30.9% |
EV/NTM Revenue Multiple - Top Quartile
NTM Revenue Multiple and NTM Growth Rate for the top quartile of companies in the Scalar Software Index, ordered by NTM Growth Rate.
* PLTR (47.2x, 62.3% NTM Growth), CWAN (8.2x, 29.3% NTM Growth) have been excluded to enhance visual meaning of this chart.
Enterprise Software Operating Metrics
Last updated Q4 2025
Median
Net Dollar Retention
109.0%
Median
ARR Growth
13.0%
Median
Payback Period
30 months
Top 10*
Net Dollar Retention
120.0%
Top 10*
ARR Growth
30.1%
Top 10*
Payback Period
13 months
*Median multiple, growth rate, and gross margin for the top 10 companies based on EV/NTM Revenue.
Pre- & Post- Money Deals
Averages for the trailing 6 months of successful software and SAAS fundraising, including rounds Series A through Series D.
Average
Deal Size
- Series A$26.0B
- Series B$65.0B
- Series C$150.0B
- Series D$293.0B
Average
Pre Money Valuation
- Series A$199.0B
- Series B$580.0B
- Series C$2,745.0B
- Series D$5,150.0B
Average
Post Money Valuation
- Series A$223.0B
- Series B$644.0B
- Series C$2,911.0B
- Series D$5,443.0B
The data for the Scalar Software Index is collected based on market data on the last trading day of the previous month.
Metric definitions:
- EV/NTM Rev: Enterprise value to next twelve months revenue.
- EV $MM: Enterprise value, calculated as the market value of equity plus net debt and minority interest, in millions of USD.
- LTM Rev $MM: The last twelve months revenue in millions of USD.
- NTM Rev Growth: The expected growth rate of revenue for the next twelve months.
- LTM Rev Growth: The growth rate of revenue over the last twelve months.
- Gross Margin: The percentage calculated from gross profit over revenue.
- Operating Margin: The percentage calculated from operating income (EBIT) over revenue.
- FCF Margin: The percentage calculated from unlevered free cash flow over revenue.
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Data Sources: S&P Global Market Intelligence and PitchBook Data, Inc.
Enterprise Software Operating Metrics provided by Public Comps.