This news came out Morning That UserTesting, the former startup, went private last year (Thoma Bravo, Sunstone Partners) for $1.3 billion, or $7.50 in cash. In the year The deal, which is expected to close in the first half of 2023, includes a “go-shop” period if better negotiations are reached.
Holders of user trial shares have reason to rejoice. Customer Insights Forum states that it is “selling at a premium of approximately 94%. [its] Stock Price Closing” yesterday. As a result, UserTesting shares rose today as investors shrugged off the news.
User testing dropped earnings this morning in conjunction with the deal news, giving us a window into its health. To improve our understanding of the value of small tech companies, we can cross-reference those numbers with UserTesting’s final price on sales—at least compared to their industry giants.
The lessons are very simple, and yet not great for personal unicorns.
Looking at the deal, it’s clear that single-digit SaaS multiples are not only realistic, but sustainable. User testing is coming in at a premium of nearly 100% over last year’s launch price. Unless the company is in financial trouble, it’s scary for unicorns who raised money last year.
