Q: Is a 40% Month on Month (MoM) growth for a SaaS business considered an optimistic forecast?
If it’s the early days, of course not.
One way to simplify all this is this … the very, very best SaaS companies go from $1m to $10m ARR in 5 quarters or less.
Whatever growth you need to get there ($1m), so be it.
And after $10m, that momentum carries you to $100m in a somewhat predictable amount of time.
So 40% at 5k MRR might be great. But what really matters is how quickly you are growing as you approach $1m ARR.
If you can grow 10% MoM or faster at $1m ARR, you are doing a lot of things right.
If you can grow in the teens MoM after $1m ARR, you are going to kill it.