2022 Private SaaS Company Growth Rate Benchmarks

It’s not difficult to benchmark your SaaS company’s performance against that of public SaaS companies, but it’s also only slightly useful. The sheer scale of public companies makes for an apples-to-oranges comparison to smaller, private companies that do not reveal actionable performance insights.

In the Research Brief linked below, SaaS Capital provides growth rate data from our survey of more than 1,500 private SaaS companies. Top takeaways include:

• The overall median growth rate for all companies in the survey registered 40.0%. This is up from an overall median of 29.6% in 2020 and puts growth at the same pre-pandemic levels seen in 2019. Overall, only 2.7% of the companies reported flat or negative growth in 2021, compared to 13% in 2020.
• Growth rate is positively and exponentially correlated with net revenue retention. Increasing Net Revenue Retention (NRR) from 100% to 110% improves growth rate by 5%, increasing NRR from 110% to 120% improves growth by 7%, increasing NRR by another 10% improves growth by 13% and another 10+% improves growth by an amazing 30%.
• Billing frequency had no impact on median growth rates. Previous surveys had shown that companies billing annually upfront reported higher growth than those billing month-to-month.
• SaaS companies targeting a horizontal market are growing faster than companies attacking a vertical industry: 45% growth versus 38%, respectively.

 

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