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SaaS growth rates at exit

by

Sammy Abdullah

On median, these companies grew revenue 43% from the prior year, while the average was 51%. Median overall revenue was $168mm while the average was $286mm (that average is skewed by names like McAfee which had $2.6bln of revenue). A few other observations.

For an IPO, revenue should generally be $100mm+. Only 10 companies had revenue below $100mm at the time of IPO. BackBlaze was the lowest ($54mm) and had 32% YOY growth.

Other revenue is small. On median, 11% of revenue was characterized as non-recurring such as services, implementation, and other non-recurring revenue. Only 27 of the 73 companies break out other revenue however, and in all likelihood every SaaS company has some level of non-recurring revenue.

sammy@blossomstreetventures.comhttps://blossomstreetventures.com/metrics/

Sammy Abdullah

Managing Partner & Co-Founder

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