      SaaStr · 2023-01-22
      · 1228d
    

Competing in SaaS: Why 60% YoY Growth Makes Competition Irrelevant

Jason Lemkin argues that SaaS companies growing at 50-60% YoY or faster need not fear competition, using Docebo as a case study of a company that reached $1B+ valuation in a crowded LMS market without explosive growth. He identifies second-order revenue, customer happiness, and long-term commitment as key competitive advantages that compound over time, and emphasizes execution over competitive obsession.

8 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

ARR Growth Trajectory

$10M to $100M+$

compound result

5-year outcome at 50-60% YoY growth rates

Annual Revenue Growth Rate

50-60%

minimum threshold

SaaS companies at/above $1-2M ARR to insulate from competitive pressure

Critical Scale Checkpoint

4-5years

milestone

Time to reach significant scale before organizational fatigue

Docebo ARR at IPO

145$M

actual

Learning Management Systems market

Docebo Cash Burn to IPO

14$M

actual

Total capital efficiency

Docebo IPO Valuation

1.1$B

actual

Public market valuation

Net Revenue Retention

120-130%

minimum target

Sustainable competitive advantage through customer expansion

Strategic Planning Horizon

7-10years

minimum

Required commitment for competitive durability in SaaS