Tomasz Tunguz Blog · 2023-02-21 · 1199d

Customer Segment Performance and Growth Resilience During Economic Downturn

Analysis of public software company performance across customer segments reveals that enterprise, mid-market, and SMB buyers have experienced similar growth declines during the economic slowdown, with no segment demonstrating immunity to market conditions. Product-led growth (PLG) companies continue to outpace sales-led counterparts, though both experienced significant growth rate compression. The data suggests that individual company performance will be differentiated by product quality, execution, and strategy rather than customer segment choice.

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

Metrics in this report

High Growth Rate Threshold

30%

minimum

SaaS company annual growth rate classification

Low Growth Rate Threshold

15%

maximum

SaaS company annual growth rate classification

Medium Growth Rate Range

15-30%

range

SaaS company annual growth rate classification

Product-Led Growth Deceleration

9percentage points

decline

PLG company growth rate drop in Q2