David Spitz, Managing Director at KeyBanc, gave a rundown on the state of the SaaS market. Here are a few key stats that stood out to us.
• 20% of YTD churn can be attributed to Covid, but many companies on annual contracts haven’t had an opportunity to churn yet.
• 39% of SaaS companies have had to reduce their workforce, with the most significant impact on sales teams.
• Gross New ARR Bookings % of Starting ARR. New 2020 forecast is down 29%
• Close rates on new deals down 8%