“So we're seeing some slowdown in certain sectors and, frankly, acceleration in others, things like low-code, no-code environments, productivity, cybersecurity to protect the enterprise …
So am I seeing a broad slowdown across our platform? No. Are we seeing some pockets? Yes.”
— Jason
Be Kind
So those of us who know Vista Equity Partners (and many of you may not) think of it as one of the largest Private Equity firms buying SaaS companies. Perhaps the largest. Among others, it’s recently bought Gainsight, Salesloft, Drift, BetterCloud, Pipedrive, Avalara (just in August), KnowBe4 and other leaders, along with established folks like Citrix and more.
But I hadn’t really thought of them as a proxy for all SaaS companies until I saw the CEO’s interview from a few weeks back. The companies they own a majority of are collectively at $24B (!) in ARR, so it’s second only to Salesforce in SaaS. And they spans dozens of leading vendors in SaaS.
So Vista knows exactly what’s going on in SaaS buying now, especially enterprise and mid-market. It does less in SMB.
And here’s what it’s seeing:
- On average, its 50+ SaaS companies at $200m+ ARR are seeing growth ranging from 20%-25% a year, versus 25% last year. That’s some slowdown for sure, but not a downturn.
- Some sectors aren’t seeing any slowdown, like cybersecurity, productivity and “no code”. This is also what I’m seeing. Monday for example just came out of a blow-out quarter.
The environment isn’t getting easier in SaaS, that’s for sure. It’s harder than it was, and some categories are seeing more headwinds than others.
But Vista has a pretty broad look at SaaS. And multiples aside, it’s still Pretty Good Times.
The post Vista: Across $24 Billion in ARR, We’re Not Seeing a Broad Slowdown. But There Are Pockets. appeared first on SaaStr.
via https://www.aiupnow.com
Jason Lemkin, Khareem Sudlow
