???? The Real Story Behind B2B SaaS Growth: What 2,400+ Private Companies Tell Us About Where We’re Headed

3 Non-Obvious Learnings:

1. Cybersecurity is actually outperforming AI companies in growth rates – and has been since Q1 2022 (something you won’t read in TechCrunch)
2. The smaller the company, the more fixed-rate pricing wins – usage-based pricing doesn’t become optimal until well past $1M ARR (contrary to popular startup advice)
3. The VC squeeze is creating a “survival of the fittest” at sub-$1M ARR, where survivors are showing accelerated growth rates similar to post-2008 patterns

The Numbers You Need to Know:

• 17% average growth rate across B2B SaaS (3x better than S&P 500’s expected 5.5%)
• Growth bounced back from 14% in Q1 2023 to 17% today
• Sub-$1M ARR companies showing surprising acceleration
• Must-have sectors (logistics, cybersecurity) outperforming even AI

About the Speaker

Randy Wootton serves as the CEO of Maxio, where he leads the company’s mission to help B2B SaaS businesses grow through smarter billing and revenue solutions. Prior to Maxio, Randy was CEO of Percolate (acquired by Seismic) and previously held executive roles at CAKE, Rocket Fuel, and Microsoft. Randy combines deep operational expertise in SaaS with a unique perspective on B2B growth metrics, having analyzed data from thousands of private companies through Maxio’s platform. He’s a regular speaker at SaaStr and other leading SaaS conferences, focusing on helping founders navigate growth and monetization challenges. Randy holds an MBA from Harvard Business School and graduated from the United States Naval Academy.

5 Key Learnings on What’s Really Working in SaaS Growth

1. The Growth Recovery Is Real, But Different This Time

Remember the panic in Q1 2023? Growth had dropped to 14% across 2,000+ B2B companies. But here’s what happened next: we’ve seen a steady climb back to 17%. While VCs are doing fewer deals, they’re writing bigger checks. The money’s still there – it’s just more concentrated.

2. Small Companies Are The Surprise Winners

Here’s something counterintuitive: sub-$1M ARR companies are actually accelerating right now. We’re seeing echoes of 2008-2009, where nimble startups thrived during the downturn. Yes, there’s higher churn at the bottom of the market, but the survivors are growing faster than ever.

3. “Must-Have” Is The New “Nice-to-Have”

The fastest growth? It’s not where you might think. Look at:

• Logistics & Transportation
• Supply Chain
• Cybersecurity (outperforming AI since Q1 2022!)
• Infrastructure plays

These “boring” sectors are crushing it because they’re essential to business operations. Even AI companies aren’t growing as fast as cybersecurity right now.

4. The Pricing Model Secret Nobody Talks About

Here’s the real insight: your optimal pricing model depends on your ARR stage:

Pre-$1M ARR:

• Fixed-rate pricing wins
• Predictable cash flow matters more than optimization
• Focus on getting to product-market fit

Post-$1M ARR:

• Usage-based pricing starts to shine
• Companies with usage-based models grow faster
• You understand your users better and can monetize that knowledge

5. The Future Is Hybrid Pricing

The most successful companies at scale are mixing both:

• Platform fee (fixed) for predictability
• Usage components for upside
• This combination helps capture full customer value

What This Means For Your SaaS Company

If You’re Early Stage:

1. Stick with fixed-rate pricing until you hit $1M ARR
2. Focus on speed and agility over optimization
3. Find VCs who believe in your sector’s fundamentals

If You’re Scaling Past $1M:

1. Start experimenting with usage-based components
2. Look at hybrid pricing models
3. Use data to inform your go-to-market evolution

If You’re Past $10M:

1. Implement hybrid pricing if you haven’t already
2. Double down on infrastructure and security
3. Focus on demonstrating concrete value delivery

The Bottom Line

The SaaS market is healthy – 17% growth speaks for itself. But the playbook has changed. Success now means being in a must-have category, matching your pricing model to your stage, and building for the long term. The companies that understand this are the ones breaking away from the pack.