Each quarter we look at the YOY revenue growth of every SaaS company that has IPO’d since October 2017. The data is below and shows growth ticked up in Q1 to 22% YOY.
Historical growth was better. In 2022, YOY growth was in the 30’s. In the past 12 months we’ve leveled out to an average of ~17%, but we would note this is the second straight quarter of accelerating growth. Given that all these software companies are releasing or have released AI product, we actually expect acceleration to continue.
There is bifurcation happening. 60% of the companies in the dataset had faster growth in Q1 2026 than they did in Q1 2025. The number of companies with accelerating growth took a big jump in Q1, that trend is improving versus the 2023 period when only ~13% of companies had faster YOYG, and we’re excited to see if that trend sustains.
Overall, growth of the entire data set is improving nicely.
Thank you for your readership. See more blogs and SaaS data at blossomstreetventures.com. Other resources we’ve built for founders include: SoftwareMultiples.com; softwareMRRcalculator.com; FounderInvited.com, and TwoFoundersTalk.com. Founders are always welcome to reach out to sammy@blossomstreetventures.com as well.
Enjoyed this post?
Share it using the links below.