After studying the performance of 50 top healthcare technology businesses, Bessemer Venture Partners reveals the fundamental trends and benchmarks leaders need to know about healthcare SaaS and tech-enabled services. Read the full article here: https://www.bvp.com/atlas/benchmarks-for-growing-health-tech-businesses

1. 11/2/22 • Confidential
Benchmarks for
growing health
tech businesses
Sofia Guerra and Steve Kraus
Bessemer Venture Partners

2. HC SAAS
CMS; KFF 2018 spend per capita; McKinsey admin spend 2019
~$4 trillion US healthcare spending by type
Outpatient, $1,140B Inpatient, $627B
Prescription drugs
+ medical goods,
$371B
Long-term care, $143B
Preventative,
$86B
Other, $485B
Financial
transactions
, $200B
Corporate functions,
$371B
Operational
functions,
$133B
Customer
and patient
services,
$86B
Admin
clinical
support,
$105B Other, $57B
Medical Services
($2,850B)
Administration
($950B)
A big portion of admin spend is
unnecessary and could be
automated. While HC SaaS spend
is growing, we estimate it is only
<10% of admin spend today
TECH-ENABLED SERVICES

3. $7B 75% 18 mos 5x 120% 65% 35% 50% -45% 0.6x
<$1B <30% 24+ mos <3x <105% <55% <15% <20% -40% <0.3x
$1-10B 30-105%
12-24
mos
4-5x 105-130% 55-85% 15-40% 20-50% -40-20% 0.3-1x
$10B+ 105% <12 mos 5x+ 130%+ 85% 40%+ 50%+ 20% 1x+
$10B+ 95% 20 mos 4x 120% 65% 45% 70% -65% 0.6x
Healthcare SaaS
2
Rev
growth
3
CAC
Payback
months
4
CLTV/
CAC
5
NDRR
6
Gross
Margin
9
FCF
margin
10
CES*
1
Core
TAM
7
R&D %
of Rev
8
S&M %
of Rev
Bottom
Quartile
Middle
50%
Top
Quartile
Cloud
Average
Average
*CES: Cash Efficiency Score; Healthcare values are calculated based on database of 50+ companies in each category from $0.5-100M+ in revenue; Cloud values compares to the average $25-50M revenue bucket. All values are rounded to the nearest 5%
for clarity.

4. $140B 100% 25 mos 6x 140% 40% 35% 40% -65% 0.4x 10% 125%+
<$20B <40%
40+
mos
<3x 105% <20% <20% <15% -70% <0.3x <5% <40%
$20-
300B
40-
120%
13-40
mos
3-10x
105-
200%
20-60% 20-40% 15-50%
(-70)-
(-5)%
0.3-1x 5-30%
40-
150%
$300B+ 120%+
<13
mos
10x+ 250%+ 60%+ 40%+ 50%+ -5% 1x+ 30%+ 150%+
$10B+ 95% 20 mos 4x 120% 65% 45% 70% -65% 0.6x NA NA
Tech-Enabled Services
*CES: Cash Efficiency Score; Healthcare values are calculated based on database of 50+ companies in each category from $0.5-100M+ in revenue; Cloud values compares to the average $25-50M revenue bucket. All values are rounded to the nearest
5% for clarity.
Bottom
Quartile
Middle
50%
Top
Quartile
Average
11
Contr.
Margin
12
Memb.
Growth
2
Rev
growth
3
CAC
Payback
months
4
CLTV/
CAC
5
NDRR
6
Gross
Margin
9
FCF
margin
10
CES*
1
Core
TAM
7
R&D %
of Rev
8
S&M %
of Rev
Cloud
Average

5. Public market valuations: Five-year performance
Notes: ARR calculated as annualized calendar quarterly revenue, based on consensus
estimates. Sources: CapitalIQ as of 7/20/22.
0.0x
5.0x
10.0x
15.0x
20.0x
25.0x
30.0x
35.0x
Jul-17
Oct-17
Jan-18
Apr-18
Jul-18
Oct-18
Jan-19
Apr-19
Jul-19
Oct-19
Jan-20
Apr-20
Jul-20
Oct-20
Jan-21
Apr-21
Jul-21
Oct-21
Jan-22
Apr-22
Jul-22
TE Srvcs HC SaaS
EMCLOUD
Mean EV / ARR
Tech-Enabled Services
EMCLOUD
14.4x
(56%) Below
7.2x
(12%) Below
|
6.3x |
13.5x
(80%) Below
5.4x
(51%) Below
|
|
2.7x
25.8x
(70%) Below
13.4x
(42%) Below
|
|
7.7x
HC SaaS
5-Year High
Current %
Change
5-Year Average
Current %
Change
Current | |

6. 6 / Confidential and Not for Distribution
Today
(07/15/2022)
R² = 0.0013
0x
1x
2x
3x
4x
5x
-40% -20% 0% 20% 40% 60% 80%
EV/
Rev
Run
Rate
2022E Rev Growth %
12 months ago
(07/15/2021)
Tech-enabled services public valuations vs growth rates
Bubble size represents market cap; Analysis includes SGFY, TDOC, HIMS, CANO, OSH, ACCD, ONEM, RCM, AGL, PGNY, LFST, BNFT, EVH, PINC, and AMWL
R² = 0.7911
0x
2x
4x
6x
8x
10x
12x
14x
16x
18x
20x
-20% 0% 20% 40% 60% 80% 100% 120%
EV/Rev
Run
Rate
2021E Rev Growth %

7. 7 / Confidential and Not for Distribution
12 months ago
(07/15/2021)
R² = 0.0279
-50x
0x
50x
100x
150x
200x
250x
300x
350x
-200% -150% -100% -50% 0% 50% 100% 150% 200%
EV/
NTM
Gross
Profit
Scalability Score
Today
(07/15/2022)
Tech-enabled services scalability scores vs. gross profit multiples
Bubble size represents market cap; Analysis includes SGFY, TDOC, HIMS, CANO, OSH, ACCD, ONEM, RCM, AGL, PGNY, LFST, BNFT, EVH, PINC, and AMWL
R² = 0.4421
-40.0x
-20.0x
0.0x
20.0x
40.0x
60.0x
80.0x
100.0x
-200% -100% 0% 100% 200% 300%
EV/
NTM
Gross
Profit
Scalability Score

8. 35% 20 mos 125% 65% 20% 25% 10% 1.0x+
60% 28 mos 130% 40% 20% 25% -10% 1.0x+
60% 30 mos 120% 70% 35% 50% -35% 1.0x+
Health Tech at $100M+ revenue scale
ARR
growth
CAC
Payback
months
Net Dollar
Revenue
Retention
Gross
Margin
FCF
margin
Cash
Efficiency
Score
R&D %
of Rev
S&M %
of Rev
Tech-Enabled
Services
Cloud
Average
Healthcare
SaaS
All values are rounded to the nearest 5% for clarity