Brief on 2025 SaaS Sector Operating Trends

What story do the benchmarks tell this year? While SaaS growth continues to slow, the pace of deceleration has decreased. We examine these trends across company sizes in this report, using OPEXEngine's updated proprietary benchmark data along with public company results from the BVP Nasdaq Emerging Cloud Index.

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Broad SaaS trends in revenue growth, profitability, and operating expense distribution remained consistent in 2024, mirroring their trajectory from 2022 to 2023.
Revenue growth in SaaS companies has continued to slow down, although the rate of decline has decreased. Benchmark growth hangs around 14% for 2024 from OPEXEngine’s proprietary benchmark database versus around 18% for 2023.
EBITDA margins have continued to improve across the board, showing a continued focus on operating efficiency. Margins improved around 5 ppts in 2024, following a similar level of improvement in 2023.
To drive efficiency in the face of slowing growth, SaaS companies have cut expenses across the board. S&M saw consistent cuts across both public and private companies of varying sizes. R&D and G&A cuts varied, though in general companies tended to preserve R&D expense.

Brief on 2025 SaaS Sector Operating Trends

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