KEYBANC CAPITAL MARKETS SURVEY REVEALS PRIVATE SAAS COMPANY RESILIENCE AMIDST MARKET TURMOIL

13^th annual survey shows promising revenue growth

SAN FRANCISCO, Oct. 26, 2022 /PRNewswire/ -- KeyBanc Capital Markets (KBCM), the corporate and investment banking unit of KeyCorp (NYSE: KEY), today released results from its Technology Group's 13^th annual Private SaaS Company Survey, the benchmarking report by which the Software-as-a-Service industry (SaaS) measures financial and operating performance. This year's survey, which includes responses from senior executives at over 100 privately-held SaaS companies around the world, found solid growth prospects despite economic volatility.

For companies with more than $5 million in Annual Recurring Revenue (ARR), which comprised nearly 80% of participants in the survey this year, 2022 growth is forecast at a median rate of 36% compared to 31% in 2021. Historically, median growth for participants in our surveys have been in the 35-40% range.

"One thing the data shows is that private SaaS companies have not been materially affected by the current market landscape," says Scott Peterson, managing director, Software Investment Banking at KBCM. "For all the economic uncertainty, enterprise clients continue to spend money on technology and valuations for private companies remain consistent with what we've seen in the public markets. The SaaS sector has shown resilience."

With that said, larger companies tend to rely more heavily on upselling existing customers. In this year's survey, participants noted that 2021 median new ARR contribution from upsells and expansions was 46% compared to 36% in 2020. We expect this trend will continue in 2023, making the health of SaaS company's existing customers increasingly important.

The KBCM Private SaaS Company Survey establishes operational and financial benchmarking data for executives and investors in SaaS companies, from go-to-market selling strategies, churn and net retention rates and customer acquisition costs, to operational management, growth and margin structures, as well as data on valuation and exit expectations. To view the full survey results and to hear a deeper analysis of the findings, visit us at http://www.key.com/saassurvey.

About the KBCM Technology Group Private SaaS Company Survey
Senior executives from over 100 privately-held SaaS companies around the world participated anonymously and confidentially in the 2022 survey. Responses were submitted online between June and September 2022. KBCM cannot verify accuracy of responses. Observations and commentary contained herein relate solely to the survey results and cannot necessarily be applied elsewhere. For more information about the KBCM Technology Group, please visit us online.

About KeyBanc Capital Markets
KeyBanc Capital Markets is a leading corporate and investment bank providing capital markets and advisory solutions to dynamic companies capitalizing on opportunities in changing industries. Our deep industry expertise, broad capabilities and unique ideas are seamlessly delivered to companies across the Consumer & Retail, Diversified Industries, Healthcare, Industrial, Oil & Gas, Real Estate, Utilities, Power & Renewables, and Technology verticals. With over 800 professionals across a national platform, KeyBanc Capital Markets has more than $32 billion of capital committed to clients and an award-winning Equity Research team that provides coverage on over 600 publicly-traded companies. Securities products and services are offered by KeyBanc Capital Markets Inc. and its licensed securities representatives, who may also be employees of KeyBank N.A. Banking products and services, are offered by KeyBank N.A.

About KeyCorp
KeyCorp's roots trace back nearly 200 years to Albany, New York. Headquartered in Cleveland, Ohio, Key is one of the nation's largest bank-based financial services companies, with assets of approximately $190.1 billion at September 30, 2022. Key provides deposit, lending, cash management, and investment services to individuals and businesses in 15 states under the name KeyBank National Association through a network of more than 1,000 branches and approximately 1,300 ATMs. Key also provides a broad range of sophisticated corporate and investment banking products, such as merger and acquisition advice, public and private debt and equity, syndications, and derivatives to middle market companies in selected industries throughout the United States under the KeyBanc Capital Markets trade name. For more information, visit https://www.key.com/. KeyBank is Member FDIC.

SOURCE KeyCorp