The Importance of Seasonality in SaaS Startups

This post is by Tomasz Tunguz from Tomasz Tunguz

Click here to view on the original site: Original Post

For Google, seasonality is an important factor in forecasting quarterly revenue growth. In the advertising business, Q4 is always the strongest, followed by Q1. Q2 is the weakest. In Google’s latest financial year, the difference between the weakest and strongest quarters was 22%: $14.4B in Q4 and $11.8B in Q2. I wondered if the same were true for SaaS companies. Should SaaS startup forecasts account for differences in underlying customer purchasing habits?

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.