B2B SaaS growth may be on a path to recovery

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

As the economy has worsened, the market for many goods and services has slowed. Some SaaS products have found themselves immune, or even boosted by recently changes in consumer and business consumption patterns and travel habits. Software that aids in remote work, for example, have seen demand for their products rise sharply.

But on balance, private-market investors had told TechCrunch that they expect SaaS customer loss (churn) to rise and growth to slow. SaaS revenue, often sold on year-long contracts, is generally expected to hold up reasonably well in the current downturn; you can see this in the rapid rebound in the value of public SaaS stocks, for example. But what can data tell us?

Today we’re turning once again to statistics from ProfitWell, a Boston-based software startup that helps other companies track their subscription businesses and reduce churn. The company has provided TechCrunch with updated performance charts detailing how SaaS in the B2B world is performing.

Let’s examine what the data says, and we’ll close with a hint of how consumer SaaS is itself holding up.

A recovery, a plateau

Post by startupsnows.blogspot.com