WHAT METRICS DO THE TOP SECURITY COMPANIES REPORT ON?

Summary from the TLDR Founders newsletter

Leading cybersecurity and observability companies universally report on Revenue and Non-GAAP Operating Income metrics, with most also providing guidance on Free Cash Flow and customer-related metrics. Companies show varying preferences between Calculated Billings and Annual Recurring Revenue (ARR) reporting, with ARR emerging as a better indicator of business trajectory. The current market shows stable valuations, with median EV/NTM Revenue multiples at 16.4x. Companies are demonstrating strong efficiency metrics with a median Rule of 40 at 53%.