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. We did this analysis a while back, but I wanted to update it with data on the latest in SaaS to cross $1B in ARR, from Box to Cloudflare to ZoomInfo.
Sometimes we forget the sheer power of 50% CAGR
Watch Cloudflare power to $1,000,000,000 ARR on it: pic.twitter.com/dfmtmJnAtE
— Jason ✨2022 SaaStr Annual Sep 13-15 ✨ Lemkin (@jasonlk) August 30, 2022
So now we have plenty of data. And the average SaaS leader that gets to $1B is growing well over 50% Year-over-Year (!) :
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 ✨2022 SaaStr Annual Sep 13-15 ✨ Lemkin (@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