As inflationary pressures and macroeconomic factors weakened the consumer demand for companies, 2022 turned out to be a challenging year for Software-as-a-service (SaaS) stocks. In response to a lack of demand, tech companies began shedding employees, resulting in mass layoffs. However, the cost-cutting measures and bottom-line focus could lead to better margins and profitability in 2023.
There is no doubt SaaS has become an increasingly viable choice for organizations in terms of accessibility, functionality, and versatility in a competitive business environment. According to SkyQuest, the global SaaS market is expected to reach a value of $720.44 billion by 2028, growing at a CAGR of 25.9%.
