SaaS growth is stabilizing. Each quarter we look at the YOY revenue growth of every SaaS company that has IPO’d since October 2017. There are 62 active SaaS companies that fit that criteria. The data is below and shows a stabilization at ~20% YOY for the past 4 quarters. While YOY growth is down from 2022 (YOY growth in Q3 2022 was 29% and as of Q4 2023 it sits at 20%), it’s no longer declining which is great news for SaaS companies and investors.
Of note, out of the 62 companies, only 11 of them (18%) have faster YOY growth in Q4 2023 than they did in Q4 2022.
The median revenue of these companies was $164mm in Q4, which is $656mm annualized.
That was quick! But thanks for reading. Visit blossomstreetventures.com for more metrics and blogs
Enjoyed this post?
Share it using the links below.