      SaaStr · 2015-11-05
      · 3863d
    

The New SaaS Milestone: Why $300M ARR Has Replaced $100M ARR as the Success Threshold

Jason Lemkin argues that the bar for SaaS success has fundamentally shifted, with $300M ARR now replacing $100M ARR as the minimum target for companies seeking unicorn status. Using examples from Box and Zendesk, he demonstrates that true SaaS unicorns must reach $300M+ in ARR with high growth rates to justify their valuations in the modern market.

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

Metrics in this report

Annual Recurring Revenue Target

300M$

minimum for unicorn status

SaaS companies seeking true unicorn valuation

Box Current ARR

300+M$

actual observed

Public SaaS reference company

Cash Flow Positive Threshold

5-6M$

recommended ARR milestone

SaaS companies not pursuing aggressive VC growth

Gross Margin

75+%

typical for healthy SaaS

SaaS industry standard

Public SaaS Market Cap at $300M+ ARR

2B$

median observed

Box and Zendesk valuations

Year-over-Year Growth Rate

60%

exemplar (Zendesk)

High-performing public SaaS companies

Zendesk Current ARR

200+M$

actual observed

Public SaaS reference company