So what’s a good payback period in SaaS? We looked at the past 6 quarters of payback period for the last 62 SaaS IPO’s, which goes back to MongoDB in October 2017. The payback period data and observations are below.
Profitability. The data above only looks at SaaS companies still burning cash. Those that are profitable or that don’t grow don’t have a measurable payback period. Payback period is only applicable to those companies that are burning cash to grow.