We took a look at the SaaS leaders that are doing well today, in today’s world and that have IPO’d in the past few years. Samsara, Toast, Klaviyo, ServiceTitan and Procore.
Their Average Growth Rate in Year Before IPO: 63% (excluding prior generation)
The Numbers
*Top performer from prior generation of SaaS IPOs (2010-2015 era)
The SaaS Leaders:
1. Procore Technologies (IPO: May 2021)
- Pre-IPO Year Growth Rate: 38.4%
- Revenue Growth: $289.2M (2019) → $400.3M (2020)
- IPO Valuation: $8.3 billion
- Business: Construction management software
Procore demonstrated steady growth with revenue increasing from $289.2 million in 2019 to $400.3 million in 2020, representing 38% year-over-year growth in the year before its IPO. The company went public during the pandemic recovery when construction technology adoption accelerated.
2. ServiceTitan (IPO: December 2024)
- Pre-IPO Year Growth Rate: ~24%
- Latest Quarterly Growth: 24% YoY growth in Q3 2024
- IPO Valuation: $6.3 billion
- Business: Software for contractors (HVAC, plumbing, electrical)
ServiceTitan’s preliminary results for the October quarter show approximately 24% year-over-year revenue growth, the highest rate since mid-2023. For the 12 months ending July 31, 2024, ServiceTitan reported $685M in revenue, reflecting year-over-year growth of 24%.
3. Samsara (IPO: December 2021)
- Pre-IPO Year Growth Rate: 108%
- Revenue Growth: $119.9M (fiscal 2020) → $249.9M (fiscal 2021)
- IPO Valuation: $11.6 billion
- Business: IoT platform for fleet management and industrial operations
Samsara’s revenue more than doubled between fiscal 2020 and fiscal 2021 (ending 30 January 2021). Indeed, it rose from $119.9m to $249.9m, rising 108% year-over-year. This exceptional growth was driven by increased adoption of IoT solutions during the digital transformation accelerated by the pandemic.
4. Klaviyo (IPO: September 2023)
- Pre-IPO Year Growth Rate: 63%
- Revenue Growth: $289M (2021) → $473M (2022)
- IPO Valuation: $9.2 billion
- Business: Email and SMS marketing automation for e-commerce
The company reported $473 million in revenue for 2022, a 63% increase from the previous year. Klaviyo also achieved profitability in the first half of 2023, distinguishing it from many other IPO candidates.
7. Toast (IPO: September 2021)
- Pre-IPO Year Growth Rate: 23%
- Revenue Growth: ~$668M (2019) → $823M (2020)
- IPO Valuation: $20.0 billion
- Business: Restaurant management platform with POS, payments, and software
Toast achieved moderate but steady growth with revenue increasing from approximately $668 million in 2019 to $823 million in 2020, representing 23% year-over-year growth. Despite the pandemic’s severe impact on restaurants, Toast demonstrated resilience and adapted quickly to changing market needs with contactless solutions.
6. Monday.com (IPO: June 2021)
- Pre-IPO Year Growth Rate: 106%
- Revenue Growth: $78.1M (2019) → $161.1M (2020)
- IPO Valuation: $6.1 billion
- Business: Work management and project collaboration platform
Monday.com achieved exceptional growth with revenue more than doubling from $78.1 million in 2019 to $161.1 million in 2020, representing 106% year-over-year growth. The company benefited significantly from the pandemic-driven shift to remote work and increased demand for collaboration tools.
And the best of the generation prior to that:
Bonus: HubSpot (IPO: October 2014)
- Pre-IPO Year Growth Rate: 39%
- Revenue Growth: ~$51.6M (2012) → ~$71M (2013)
- IPO Valuation: ~$900 million
- Business: Inbound marketing and CRM platform
HubSpot achieved amazing revenue growth in their first 7 years as a company growing by more than 12x from $5.7M in 2009 revenue to 2013 revenue of $71M. Revenue grew from USD 51.6 million in 2012 to USD 77.63 million in 2013, representing approximately 39% growth in the year before going public.
Key Insights and Trends
Growth Rate Distribution
- Highest Growth: Samsara (108%), Monday.com (106%) – IoT/collaboration platforms
- Strong Growth: Klaviyo (63%) – E-commerce marketing
- Solid Growth: HubSpot (39%), Procore (38%) – Enterprise software
- Moderate Growth: ServiceTitan (24%) – Vertical SaaS
Market Context by IPO Timing
2014 (HubSpot): Earlier SaaS era, 39% growth sufficient for successful IPO 2021 (Procore, Samsara, Monday.com, Toast): Peak growth market, companies could go public with varied growth rates 2023-2024 (Klaviyo, ServiceTitan): Quality over pure growth, profitability increasingly important
Industry Patterns
- Vertical SaaS (Procore, ServiceTitan, Toast): 23-38% growth rates
- Horizontal Platforms (HubSpot, Klaviyo): 39-63% growth rates
- Infrastructure/Collaboration (Samsara, Monday.com): 106-108% growth rates
Implications for Pre-IPO Companies
Growth Benchmarks
- Minimum Threshold: ~25% for strong vertical markets
- Strong Position: 40-60% for horizontal SaaS
- Exceptional: 80%+ growth rates
Success Factors Beyond Growth Rate
- Path to Profitability: Klaviyo’s profitability was a key differentiator
- Market Timing: Samsara benefited from IoT/digital transformation trends
- Market Size: Larger TAM can support premium valuations
- Business Model Quality: Recurring revenue and strong retention metrics
Market Environment Considerations
The IPO market has evolved from pure growth focus (2020-2021) to emphasizing profitable growth and operational efficiency (2023-2025). Companies should aim for 40%+ growth rates running up to IPO while demonstrating a clear path to profitability.
And that probably means growing a lot faster before that.
Analysis based on publicly available financial data and SEC filings from company IPO prospectuses and earnings reports.
