The Hard Truth About SaaS Revenue Durability: 80% of Post-IPO Companies Don’t Compound in Value
SaaStr
AUGUST 12, 2025
The Hard Truth About SaaS Revenue Durability: Why 80% of Post-IPO Companies Don’t Compound in Value Bottom Line Up Front: The math on SaaS investing is … tough. Even “good” bets from 2021’s growth surge are stalling out because fast-growing revenue often doesn’t compound as expected at scale. With roughly 80% of post-IPO SaaS companies failing to meaningfully compound in value, investors must identify the top 10% of winners—a challenge that’s even harder pre-I
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