Tomasz Tunguz (Theory Ventures) · 2022-10-30
· 1313d
Sales Efficiency Trends in SaaS During COVID-19: Analysis and Strategic Implications
This analysis examines how COVID-19 impacted sales efficiency metrics for public SaaS companies, revealing an initial improvement followed by a sharp decline. The author argues that increasing competition has raised customer acquisition costs, and that breakthrough sales channels are needed to restore efficiency levels. Companies demonstrating superior sales efficiency are commanding premium valuations, while those facing declining efficiency must innovate to remain competitive.
Metrics in this report
Customer Acquisition Cost Growth
65%
5-year increase
SaaS companies prior to 2017
Figma Acquisition Multiple
50x ARR
valuation multiple
Adobe acquisition of product-led growth company
Sales Efficiency
52 to 47%
average
public software companies 2016-2022
Sales Efficiency Improvement
3percentage points
median
public software companies during back half of COVID
Sales Efficiency to Valuation Correlation
55%
correlation coefficient
SaaS company multiples