So 2023 wasn’t a rough year for everyone. Shopify, Canva, Monday and tons of other SaaS leaders less focused on tech and startups had big years. And broader Cloud players had great years too, from MongoDB to Cloudflare to Azure, if not quite as crazy as at the peak of 2021.
But overall, overall … well SaaS and Cloud growth hit record lows per the BVP Cloud Index:
As you can see, even though 2022 was a tough year in the public markets and for valuations, revenue growth still held up reasonably well. But then in 2023 — it just plummeted. Further and further as the year went on.
Now, plenty of SaaS leaders saw Q2’23 in particular as their low point, and saw growth reaccelerate at least a smidge from there. So there is plenty of reason for at least modest optimism for 2024.:
And Gartner still predicts overall Cloud spend will grow to record rates in 2024.
But the trend of slowing growth in 2023 wasn’t just a thing — it was an All Time Low. We’ve always bounced off the lows. But at some point, perhaps, Cloud spend will be so saturated, it just has to slow. I’m betting that’s not 2024-2026. Still, the trend line does make you worry a smidge.
Altimeter: SaaS Growth Has Finally Rebounded. Albeit Only a Little Bit.
The post We End the Year at All-Time Lows for SaaS Growth. A Buying Signal — Or The End of an Era? appeared first on SaaStr.
via https://www.aiupnow.com
Jason Lemkin, Khareem Sudlow
