The era of gentle SaaS deceleration is dead
Public and private markets have abandoned SaaS companies that cannot show growth acceleration, rendering the 'gentle deceleration' model obsolete.
The argument
The speakers argued that markets are punishing companies with single-digit or low-double-digit growth by stripping away premium valuations. To maintain credibility and premium multiples, legacy SaaS companies must actively reaccelerate growth rather than manage a soft landing with higher margins.
The thesis, stress-tested
✓ What validates it
- ✓Further multiple compression for SaaS companies growing under 15% year-over-year
- ✓Sustained premium multiples for companies demonstrating accelerating revenue growth
▸ Risks discussed
- ▸High-momentum companies trade at extreme valuation premiums, leaving little room for execution missteps
Hear it yourself
"We've got to we've got to accelerate to get back credibility with the public markets, accelerate, not manage a genteel deceleration, which was '22 to late twenty twenty five, not not manage a gentle deceleration with higher net margins, which everyone thought was the job at scale."
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