Q2 2020 Results for SaaS Companies – A Mixed Bag

July 31, 2020

Second quarter numbers are in and results are mixed.  Overall, companies were up for first half results 2020, but second quarter was tough. COVID impacted sales for most companies in April and May, with many companies reporting sales coming back in June.

We recently fielded a quick survey of SaaS companies to help the SaaS Finance community better understand peer company YTD revenue performance.  We also wanted to learn more about 2H expectations and how peers are approaching the planning process for the upcoming FY budgeting process. 

We collected data over a two-week period mid-July; over 30 SaaS companies participated.  About 50% of the participating companies were mid-sized, private companies with revenues between $10M-$100M, almost 20% have had revenues of $100M-$1B, and 33% were early-stage companies under $10M.

1stH 2020

Survey results showed that for 1H performance:

  • Just over half of all respondents saw revenue increases in the quarter ending June ’20, and 70% of all companies saw an increase in 1H ’20 revenues;
  • 63% expect 2H ’20 revenues will be up over the same period last year;

SaaS companies expecting to grow in 2H 2020

As of mid-July, the survey results showed that:

  • 90% of early stage SaaS companies under $10M are planning for an increase in revenue for the 2H 2020
  • More than half of mid-sized private SaaS companies ($10M-$100M) expect growth in 2H 2020
  • While only 20% of large SaaS companies expect growth, 20% were unsure and 60% are planning for a possible retraction of revenue in 2H 2020

FY 2021 Planning

As of mid-July, the survey results showed that:

  • The majority of companies (on a calendar year FY) are planning to launch their budgeting and planning processes in Sept. or Oct;
  • But larger companies ($100M +) are seeing budgeting and planning processes being impacted and pushed out by COVID; more so than for smaller companies

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