Security News > 2022 > March > SaaS revenue declined by 46% in 2021

Software-as-a-service companies saw their revenue growth slow by 46% in 2021 compared to 2020, according to a study by Paddle.

In 2020, SaaS businesses' revenue grew on average by 78%, and showed no sign of slowing, and as a result, the market is now worth an estimated $145bn - up from $85bn in 2018.

According to the report SaaS businesses saw their revenue growth slow in 2021 with the majority of companies managing only to maintain their newly-increased revenue, rather than building on the previous year's success.

Overall, the SaaS companies surveyed recorded an average revenue growth of 32% in 2021, a decline of 46% from the prior year.

Thankfully, the research has identified the three key growth levers of SaaS businesses that have managed to maintain high growth rates throughout 2020 and 2021, by examining these so-called 'Outlier' firms.

Although the pandemic turbocharged growth for software companies in 2020, 2021 was a different story.

News URL

https://www.helpnetsecurity.com/2022/03/15/saas-revenue-slow/