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Several folks asked for a B2B SaaS breakdown of our PW index (where we track daily growth of 20k+ subscription companies).
Ask and you shall receive. Also, for @alex in the wake of Yahoo's changes. :)
Here's the data on how COVID didn't do squat to most of B2B.
Let's go
Ask and you shall receive. Also, for @alex in the wake of Yahoo's changes. :)
Here's the data on how COVID didn't do squat to most of B2B.
Let's go
First up, where's this data come from?
Over 20k companies use @profitwell. We aggregated this data and built an index (like a stock index) for different subscription verticals.
Yes, we took out outliers and even used some fancy stat magic to clean the data.
To the data...2/
Over 20k companies use @profitwell. We aggregated this data and built an index (like a stock index) for different subscription verticals.
Yes, we took out outliers and even used some fancy stat magic to clean the data.
To the data...2/
Here's daily shifts in B2B SaaS revenue since Jan 1, 2019
Notice how B2B SaaS just keeps marching every single day without stop until the 2019 holidays and then a 3-4 week stall when COVID hit.
Here's the weird part... 3/
Notice how B2B SaaS just keeps marching every single day without stop until the 2019 holidays and then a 3-4 week stall when COVID hit.
Here's the weird part... 3/
COVID *accelerated* growth.
2019 saw a 30-35% YoY growth rate, while 2020 is looking to end in the 40-45% range.
I think this stems from 2 factors:
1. Execs got disciplined. We were lazy in 2015-2019 and stiffened up when we thought it'd be bad in 2020
2. We...
4/
2019 saw a 30-35% YoY growth rate, while 2020 is looking to end in the 40-45% range.
I think this stems from 2 factors:
1. Execs got disciplined. We were lazy in 2015-2019 and stiffened up when we thought it'd be bad in 2020
2. We...
4/
We saw an adoption of B2B SaaS that accelerated the move from perpetual.
Yes, Slack/Zoom crushed it, but we also saw the last vestiges of "don't want to pay for a subscription" die out.
Points from @tientzuo and @jasonlk are going from "maybe" to "duh".
This explains...
5/
Yes, Slack/Zoom crushed it, but we also saw the last vestiges of "don't want to pay for a subscription" die out.
Points from @tientzuo and @jasonlk are going from "maybe" to "duh".
This explains...
5/
New revenue has accelerated this year (top line - new sales + upgrades). The dotted line is the average daily new revenue of last year and we're just crushing it.
Churn/lost revenue (bottom line) dipped around COVID, but snapped back to normal quickly.
We also...
6/
Churn/lost revenue (bottom line) dipped around COVID, but snapped back to normal quickly.
We also...
6/
Saw upgrades accelerate.
Here's new revenue broken out into new deals and upgrades. Normally downturns see new contracts go to nothing and upgrades save you, but here they're both rocking.
This is a good note to never underestimate expansion revenue.
Overall...
7/
Here's new revenue broken out into new deals and upgrades. Normally downturns see new contracts go to nothing and upgrades save you, but here they're both rocking.
This is a good note to never underestimate expansion revenue.
Overall...
7/
COVID impacted obvious sub-verticals - remote, gym/dining software, etc. Along with obviously hurting humans. People died/are dying. Not glossing over that.
Yet, most SaaS businesses got a rising tide that'll continue to accelerate.
This SaaS thing is here to stay. 8/
Yet, most SaaS businesses got a rising tide that'll continue to accelerate.
This SaaS thing is here to stay. 8/
Anyways, back to the analyst bubble. Stay safe, warm, and use the rest of COVID to invest in things that accelerate you out of COVID in 2021 (community, product, ops)
Also, if you found this valuable, appreciate a retweet of the thread. Research takes time. :)
/fin
Also, if you found this valuable, appreciate a retweet of the thread. Research takes time. :)
/fin
