Moving away from CAC spikes and GTM budget cuts to stabilizing performance trends
Our third annual SaaS Benchmark Report is out now. Last year’s report used data from 900 B2B SaaS companies to define what success looks like in a downturn, track growth trends, and identify top-performing efficiency measures. This year’s report was created with data pulled from over 2,000 B2B SaaS companies. Our insights show that the industry is changing, and nimble, and responsive companies are being rewarded with stabilized growth.
Read the 2024 SaaS Benchmark Report here.
Today’s market environment
B2B SaaS growth has slowed in recent years as companies shift focus from rapid growth to sustained profitability and preservation of runway. As interest rates climb, SaaS companies, especially those in the early stages, are finding it more difficult to secure growth capital. Capital gaps lead to layoffs, budget reviews and renewal or purchase delays. As software buyers and vendors tighten their belts, Customer Acquisition Costs (CAC) increase.
Early signs point to an impending increase in VC and external financing, but in the meantime, our data shows that spending has decreased in order to improve margins. Today, we’ll break down our key findings.
Download the full 2024 Benchmark Report to get the details.
What the data shows
Year-over-year growth has declined since 2022, but the rate of decline is slowing, and even reversing in the EU.
Profitability across all groups is up, which means that companies can better meet challenges, unexpected expenses, and prepare better for future fundraising.
R40 has remained stable across ARR sizes and even improved in some cases, which is great news for future sustainable growth.
Liquidity continues to decline as companies continue to burn cash. With less funding available across the board, it’s more difficult for companies to stay liquid.
Debt/ARR is decreasing as high interest rates make debt less attractive.
Leveraging the SaaS Benchmark Report for growth
The Capchase SaaS Benchmark Report 2024 can be used as a way to see how your company measures up. Are you making the same choices as others in your ARR bracket or industry? Are you seeing similar trends?
The Benchmark Report can also be used to chart a course for future growth. In the report, we share our insights and analysis, as well as recommendations for where companies should invest in order to power long-term sustainable growth.
Here’s how to get the most out of our SaaS Benchmark Report:
- Get the 2024 report here
- See how your company measures up
- Identify metrics that need improvement
- Invest in key growth levers
- Grow alongside the best in the industry
