New Data From KeyBanc Demonstrates SAAS Companies Poised to Power the Post-Pandemic Recovery in 2022
November 2, 2021
While the pandemic shutdowns of 2020 have led to supply chain disruptions, dampening growth across the physical universe, SAAS companies have rebounded strongly as the workforce relied on accelerated digital transformation to live, work, and play.
New data demonstrates that SAAS companies are poised for robust growth in 2022. A recent report from KeyBanc Capital Markets (KBCM) analyzes survey results of private SaaS companies conducted in June and July 2021. For this year’s survey, KBCM included responses from senior executives at more than 350 companies.
Below are some of the key findings from the survey analysis.
- KBCM found a reacceleration of growth as companies recovered from the economic disruptions caused by COVID-19.
- Survey respondent forecasts for 2021 show growth levels increasing back to a median of 36% for companies with more than $5 million dollars in annual recurring revenue (ARR), as the disruptions from COVID-19 become less severe.
- Like many industries, the global private SaaS sector experienced a slowdown in growth during 2020. Median growth slowed to 28%, notably below the pre-pandemic range of 35-40% which the survey has historically polled.
- Median ARR historical growth of 28% aligns with Fall 2020 SaaS Survey COVID Edition results. Historically, median growth for participants in our surveys has been in the 35-40% range, underlining COVID’s impact on SaaS businesses in 2020.
- Forecasted growth for 2021 was 36%, significantly higher than for 2020.
- Exit expectations on public listings were so high that they nearly equaled those focusing on acquisition by both financial sponsors and strategic buyers.
- Valuation statistics showed a median multiple of 8.4 times annual recurring revenue in a capital raise or change of control since January 2020.
- As expected, companies anticipating an eventual public listing are growing significantly faster and burning more – specifically on Sales and Marketing. These companies are also able to drive more upsell and expansion revenue evidenced by strong net dollar retention.
The full survey results can be found here.
Disclaimer
This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.
Author(s)
Related Insights
December 18, 2025
Manufacturing Industry Advisor
Foley Automotive Update
Analysis by Julie Dautermann, Competitive Intelligence Analyst Foley is here to help you through all aspects of rethinking your long-term…
December 18, 2025
Innovative Technology Insights
Data Centers: The Role of AI and Semiconductors in Transforming an Industry
Data Centers: The Role of AI and Semiconductors in Transforming an Industry Key Takeaways AI is driving unprecedented demand for data…
December 18, 2025
Energy Current
Texas Energy Arbitration Disputes
Key Takeaways Texas courts enforce arbitration agreements strictly as written, making precise drafting critical.Incorporating AAA or…