Operating margin got worse. Operating margin averaged -1% each quarter prior to the recession and -2% during the 6 quarters of the recession. That doesn’t sound like much change, but it means operating margin got 2x worse.
In summary, as a SaaS business, it’s not unreasonable to expect to grow through the recession albeit at a slower pace. Additionally, that growth will be much more expensive to achieve as sales cycles blow out, contract sizes get smaller, and perhaps upgrades wane.
Big thanks to SaaS Capital for putting together the data. Visit them at sammy@blossomstreetventures.comhttps://blossomstreetventures.com/metrics/
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