Part 1: SaaS Growth Is Slowing – The Deceleration Is, Too
Signs of Stability in a Slower Growth Era
For the second year in a row, SaaS growth has slowed. But this year’s story is more nuanced: the rate of slowdown itself is beginning to stabilize.
According to OPEXEngine’s proprietary SaaS benchmarks, average revenue growth was ~14% in 2024 – down from ~18% in 2023. That’s a smaller drop compared to 2022-2023, when companies saw declines of 7-8 percentage points (ppt).
We’re seeing a potential “bottoming out” of the post-peak growth adjustment. For companies under $500M in revenue, the average growth decline in 2024 was just 1-5 ppt, compared to much steeper drops the prior year. Public SaaS companies larger than $500M in the Bessemer Venture Partners (BVP) Nasdaq Emerging Cloud Index followed a similar pattern.
What’s driving the stabilization? Recent data from Bain & Company’s Private Equity Tech practice suggests that IT buyer sentiment – while still cautious – has improved steadily since mid-2022. Even with a slight dip in March 2025, sentiment remains materially higher than it was during the market reset of 2022-2023.
The takeaway: growth isn’t back to 2021 levels, but it’s no longer in freefall. SaaS companies are adjusting to this new reality with a continued focus on operational discipline.
Download the full Brief on 2025 SaaS Sector Operating Trends here: https://www.opexengine.com/resource/brief-on-2025-saas-sector-operating-trends
