So now that we’ve been doing our 5 Interesting Learning series on public SaaS companies for a while, we can pull out a number of trends.
Maybe the most jaw-dropping is just how fast the top SaaS and Cloud leaders grow … at $1 Billion in ARR.
The average SaaS leader that gets to $1B … grows almost 60% (!) :
And the more recently they’ve gotten there, the faster on average they are growing!
Of course, not everyone is going to get to $1B in ARR :). Or even accelerate once they get there. Many that don’t get there, or are unlikely to, are growing slower than this cohort for sure.
But it’s far more common than we ever would have thought to not just get to $1B in ARR, but often grow at near-record rates once $1B is crossed. HubSpot, Crowdstrike, Zscaler, and so many others not only grow at epic rates at $1B in ARR — but they got there growing faster than they did the prior quarters.
Hubspot didn't just grow an incredible 41% in Q1'21 to $1.1B in ARR
* Revenue growth accelerated from 32% to 41%
* And new customer growth accelerated to a crazy 45% YoY
* All while keeping ACVs constant at ~10k
They did it the hard way, with SMBs
— Jason ✨BeKind✨ Lemkin #ДобісаПутіна (@jasonlk) May 6, 2021
Just take it as a challenge. That there’s no ceiling if you put together the world’s best team. There’s no ceiling to NRR — it can stay high forever. And there almost appears to be no ceiling to growth in SaaS.
At least, $1B in ARR certainly isn’t any sort of ceiling.
And that’s a wrap on @twilio Q1 2019 earnings! $233M revenue, 81% y/y growth, and our first quarter including SendGrid results! Thank you to our customers, partners, and Twilions worldwide on another quarter of continued strong growth. Onward! pic.twitter.com/winStmw6bL
— Jeff Lawson (@jeffiel) May 1, 2019