Over the past year, companies have continued to focus on efficient execution, mastering the art of doing more with less. This new approach, coupled with a favorable macro environment and excitement around AI innovation, has resulted in a growth outlook for many private SaaS companies, according to our latest report.

For 15 years, KeyBanc has produced the Private Company SaaS Survey, which evaluates the performance of private SaaS companies year-over-year. The report has become a vital resource for the SaaS community, offering guidance to private growth companies.

For the second consecutive year, Sapphire Ventures has partnered with KeyBanc to bring the operator perspective to the analysis. Together, we deliver actionable learnings to help SaaS companies understand the impact of market trends and advancements in AI on go-to-market strategies, efficiency, and profitability.

Key trends you will find in this year’s survey report:

• ARR growth in 2024 is expected to slightly decelerate to ~19%, with gross and net retention rates remaining stable at ~90% and ~101%, respectively. Although 19% is not high by historical standards, it is close to 2x public SaaS company growth in 2024, which averages 11% (as of October 2024) 
• Sales quota attainment held steady at ~70% in 2023 but is projected to increase to ~75% in 2024 as the macro environment improves. Meanwhile, sales quotas have risen from ~$650K in 2022 to ~$750K in 2023 and 2024
• Operating efficiency and EBITDA margin improvements are taking priority over aggressive growth strategies, with budget cuts continuing, especially for companies >$50M ARR
• Private market financings and multiples are gaining strength, driven by AI advancements and an optimistic macro outlook, while public market valuations have returned to more normalized (but still lower than long-term average) levels at ~5-6x NTM revenue

Download the full report to explore the trends shaping SaaS and GTM strategies in 2024.