With all the doom and gloom on Twitter, you could be forgiven for thinking SaaS customers have somehow evaporated.
And perhaps they will. But not today. Not today.
Kyle Porter, CEO of Salesloft, was kind enough to share that well into nine figures of ARR, they are not only growing 53%, but hit the plan early for this quarter — and are seeing no signs of any slowdown, at least not yet.
Ended May $1.7M ahead of plan and growing ARR @ 53%. June seems to show no signs of slowing down but we’re monitoring demand metrics like a hawk to see when or if we’ll experience a slow down.
— Kyle Porter ☔️ (@kyleporter) June 28, 2022
Zendesk, in the midst of a $10B go-private transaction, just announced its last quarter was its best revenue increase ever:
And this past quarter, Salesforce, the bellwether of SaaS, announced it was accelerating and had seen no slowdown yet:
Salesforce growing 24% at $30 Billion in ARR, no slowdown yet:
“We’re just not seeing material impact on the broader economic world that all of you are in,” Marc Benioff, Salesforce’s co-founder and co-CEO, said on a conference call with analysts.
— Jason ✨BeKind✨ Lemkin #ДобісаПутіна (@jasonlk) June 1, 2022
Others leaders are seeing the same. Snowflake, while seeing some softening in certain segments, is seeing strength in others. Yes, some segments have been hit hard as we move into a post-Covid world, like Zoom and DocuSign, despite being iconic brands and products. Others are seeing a post-lockdown reversion to prior growth rates, like Shopify.
I have been working in B2B SaaS for almost 15 years (since we called it SaaS).
This year IT spending on SaaS will rise to …. 10% of total 😳
1 – I can’t believe its going so slowly 🤷
2 – We’re at the beginning with many more years of growth in SaaS 🚀
— RowanTrollope.eth (@rowantrollope) June 29, 2022
Overall these 3 SaaS leaders are bellwethers of where much of SaaS spend is. Salesloft (and Gong and Outreach) are proxies for all sales automation spend. Zendesk is a proxy for all post-sales and support and CX spent. And Salesforce … well Salesforce really is a proxy for all SaaS spend. At $30B+ ARR, up to 10% of all SaaS spend goes straight to Salesforce.
So while some areas are challenged today, overall, SaaS is growing faster than ever. And hasn’t taken a real hit yet.
Find a different excuse if you need one.
A bit more:
- 5 Interesting Learnings from Zendesk at $1.6B in ARR
- Salesforce: “We’re Not Seeing Any Downturn or Deceleration”, Growing 24% at $30 Billion in ARR
- During the Last Downturn, Leads Still Came In