Security
Cybersecurity SaaS companies deliver endpoint protection, cloud security, identity, and threat intelligence via subscription. Security spend is increasingly non-discretionary, which insulates this sector in downturns. The best-performing security SaaS businesses achieve NRR above 120% as customers add seats, modules, and coverage. Track 3 public cybersecurity companies here.
What drives multiples in Security
Cybersecurity multiples are supported by non-discretionary spend dynamics — security budgets are cut last in downturns. The companies commanding top-quartile multiples have achieved platform status (replacing point tools with a unified agent or console), driving NRR above 120% through module expansion. Investors also reward category leadership signals: inclusion in major analyst reports and displacement of incumbent vendors.
Top performers in this sector
Sector vs. all public SaaS
3 Companies
Okta, Inc.
SentinelOne, Inc.
Verint Systems Inc.
Sector Insights
Below-average efficiency
The Security sector averages a Rule of 40 score of 33, below the 35-point threshold that distinguishes efficient SaaS businesses. Higher go-to-market intensity or infrastructure costs relative to growth are common drivers.
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