Maxio Institute's B2B SaaS Report: Cybersecurity Led in 2023 with 37% Growth, Restaurant Tech Surges by 29% YoY

Maxio, the industry-leading billing and financial operations platform for B2B SaaS companies, today unveiled the latest edition of The Growth State for Subscription Businesses from the Maxio Institute, the company's research and analytics group.

The analysis of billing data from over 2,400 companies with combined $15B in annualizing billings between 2022 and the entirety of 2023 indicates that B2B businesses' growth rates steadied throughout 2023. Despite modest improvement in growth rates throughout Q2 and Q3, the growth rates for subscription businesses processing up to $100MM leveled off and slightly declined to finish the year at 14% growth in Q4, a 6% decline from the same period in Q4 2022.

Analysis from the Maxio Institute data shows that:

• B2B SaaS businesses remained resilient the last eight quarters. While growth has declined from 2022, growth rates appear to have stabilized.
• Companies with less than $1MM ARR have a better chance of success by deploying a subscription invoicing model vs. pure-play consumption. Invoicing companies outpaced their consumption counterparts by an annualized growth of 33%.
• However, consumption-oriented businesses with more than $1MM ARR outpaced subscription invoicing business in the last three quarters of 2023 and finished Q4 with 22% in annualized billings growth, 6% higher than their subscription counterparts.
• The top performing US region over the last eight quarters has been the Southeast, with an average growth rate of 21%.

New to this report edition is segmentation by industry to understand which categories were most and least resilient over the last eight quarters, who showed the best and worst improvement YoY, and which companies performed best in Q4 ?23.

• Cybersecurity led the way with an average annualized growth rate of 37% through the last two years. Public Sector and Transportation Tech also proved resilient with 24% and 20% annualized growth rates, respectively.
• The Restaurants, Hospitality and Leisure Tech industry improved the most from 2022 to 2023, with a 29% improvement in YoY growth rates. This industry has maintained above average growth rates throughout 2023, with annualized growth rates finishing the year at 34%, a highpoint over the last two years.
• Other industries that performed well in 2023 included Property Tech and Fintech, with annualized growth rates of 25% and 20%, respectively.

"We see that the market is returning back to normalized growth levels after experiencing a period of abnormal growth and fluctuation," said Jon Cochrane, Director of the Maxio Institute. "This period of abnormal growth continues to weigh heavily throughout the private technology and subscription sectors. Having comprehensive insights into every aspect of your financial operations is crucial to creating optimal pricing strategies that not only serve your clients' needs but also allow your business to remain resilient through periods of slowing growth."

Access the full report here.

Methodology

The Maxio Growth Index analyzes anonymized year-over-year (YoY) customer billing data from Maxio, a billing and financial operations platform for B2B SaaS, which currently processes over $15B in billing and invoicing data annually. Maxio has over 2,400 customers, most of which are VC- or PE-backed software-as-a-service (SaaS) companies with revenue up to $100M.

About Maxio

The Maxio Institute is a research arm of Maxio, the #1 billing and financial operations platform for B2B SaaS businesses. Through our work with over 2,400 subscription businesses, we're uniquely positioned to provide data-backed insights and benchmarks. Our goal is to help B2B SaaS businesses of all sizes gain an accurate picture of the current market, so they can make informed decisions about their future.