A fairly incredible thing has happened as we leave Covid behind (at least in the U.S.) and as Cloud continues to scale:

Many of the best in SaaS are accelerating even at massive scale.  Even at $1B ARR, or even at $24B ARR like Salesforce.

Let’s take a look at a few recent examples:

  1. HubSpot.  HubSpot was growing 30% at $800m ARR, 35% at $1B ARR, and now an incredible 41% at $1.1B ARR.  That’s massive acceleration at scale.  More here.
  2. Salesforce.  The grandparent of SaaS blew out last quarter, growing 23% at $24B+ in ARR!!  That’s up from 20%.  More here.
  3. Elastic.  Elastic was growing 39% at $700m ARR and accelerated in just one quarter to 44% at $800m ARR.  That is a lot of acceleration, quickly.  More here.
  4. Coupa.  Coupa saw incredible acceleration, from 31% growth last quarter to 47% (!) growth this quarter.
  5. Snowflake.  Snowflake didn’t accelerate this past quarter, but it maintained almost the same breathtaking growth rate — 110% year-over-year.  Snowflake isn’t slowing as it crosses $1B ARR.  That’s 100%+ growth at $1B ARR.  More here.
  6. Zscaler, a quiet giant in Cloud security, also accelerated to 60% growth at $700m ARR!  That’s up from 55% at $600m ARR!
  7. Cloudflare shows no sign of slowing down.  Growth at $500m ARR is 51%.  That’s just as fast as at $300m ARR!  More here.
  8. Asana accelerated to an incredible 60% at $300m ARR — up from 55% at $250m ARR.  More here.

We can keep adding to the list.  Not everyone is accelerating, but enough of the leaders are.  And it’s not just a Covid boost.  Yes, Shopify got a huge boost from Covid, as did Zoom.  But Elastic?  HubSpot?  Their benefits from Covid were at best, a little more indirect.  It’s likely we’re more seeing accelerated spend to fuel the post-Covid economy as much as anything.

Cloud is just on fire.  It’s even earlier innings than we expected.  If nothing else, take no excuses.  It seems like every market in SaaS is even bigger than we expected, and importantly, able to not just hit $1B in ARR but accelerate afterwards.

Seize the day.

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