SaaS Recession
A term used to describe the period from mid-2022 to mid-2023, characterized by valuation corrections, missed sales forecasts, and slower growth for software companies, particularly in the B2B sector.
First Mentioned
1/4/2026, 3:45:36 AM
Last Updated
1/8/2026, 4:12:36 AM
Research Retrieved
1/4/2026, 3:53:20 AM
Summary
The SaaS Recession refers to a period of economic contraction and slowed growth within the Software-as-a-Service industry, which industry analysts and observers like David Sacks have recently declared to be over. This transition into a 'SaaS Recovery' is marked by re-accelerating growth among major cloud infrastructure providers, specifically AWS and Google Cloud, as well as enterprise software bellwethers like Atlassian. The recovery is occurring amidst a complex economic landscape characterized by a 'rolling real estate crisis' in the commercial office market and a significant pivot toward AI-driven productivity and investment. While some analysts previously debated whether the recession was a myth or a reality, the current consensus among tech commentators points to a resurgence driven by cost-cutting efficiencies and the integration of foundational AI models.
Referenced in 2 Documents
Research Data
Extracted Attributes
Current Status
Declared over; transitioning to SaaS Recovery
Economic Context
Occurring alongside a commercial real estate crisis and regional bank instability
Technological Drivers
AI Advertising Optimization and Enterprise Productivity tools
Primary Indicators of Recovery
Re-accelerating growth at AWS, Google Cloud, and Atlassian
Timeline
- Historical SaaS performance during the 2008 recession showed slowed growth for even the best-performing companies. (Source: Web Search: SaaS Capital)
2008-09-15
- David Sacks declares the SaaS Recession over during the All-In Podcast Episode 165, citing re-accelerating cloud growth. (Source: Document fa6f8fa4-15ac-4405-9c29-3a4f4cfa393c)
2024-02-09
Wikipedia
View on WikipediaWorkable (software)
Workable is a software-as-a-service (SaaS) company that provides a recruitment and human resources (HR) management platform. It is based in Boston, Massachusetts.
Web Search Results
- SaaS in the Light of Economic Downturn: How to Protect ...
This article explores how SaaS companies can prepare for an economic downturn, protect their businesses, and make them AI-proof, ensuring long-term success in a
- A SaaS Recession? Only in Our Minds. - Maxio
Todd Gardner explains how public SaaS companies maintain stable revenue despite economic challenges, debunking the 'SaaS recession' myth.
- Is There a Future for SaaS in 2026?
The upcoming recession is predicted to stimulate hardship for SaaS market. Explore the possibilities of SaaS collapse and how to avoid it.
- How Do SaaS Companies Perform in a Recession?
A recession will slow the growth of an “average” SaaS company substantially. In the 2008 recession, the growth rate for arguably the best SaaS companies in the
- Is SaaS a safe industry to be in with the upcoming recession?
SaaS is a delivery model. No matter how bad the recession gets, companies providing consumer staples still need software, security, payroll, etc.