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IT Service Management

IT service management (ITSM) SaaS platforms automate helpdesk, incident management, and asset tracking workflows. ITSM buyers are enterprise IT departments with long renewal cycles and high switching costs. High platform stickiness and multi-product expansion motions typically drive strong NRR well above category averages. Track 2 public ITSM companies here.

Med EV/Rev9.3x
Total Mkt Cap$130.0B 30.3% vs prior qtr
Avg Rule of 4038Avg Gross Margin77%

What drives multiples in IT Service Management

ITSM multiples are driven by platform breadth and enterprise penetration. Companies that expand from helpdesk into adjacent ITOM, AIOps, and DevOps workflows command significant multiple premiums because each expansion reduces churn risk and increases ACV per customer. The largest ITSM platforms trade at premium multiples justified by NRR above 120% and strong RPO growth.

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Sector vs. all public SaaS

EV / Revenue9.3x vs 3.5x all-SaaS avg
Gross Margin77% vs 75% all-SaaS avg
Rule of 4038% vs 33% all-SaaS avg
Revenue Growth YoY23% vs 15% all-SaaS avg
At or above all-SaaS median
Below all-SaaS median
All-SaaS median

2 Companies

Sector Insights

ServiceNow, Inc. is the outlier

ServiceNow, Inc. (NOW) posts a Rule of 40 of 59, more than 20 points above the sector average of 38. This efficiency standout pulls the sector mean higher.

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