Software as a service remained a large and fast-growing part of enterprise technology in 2024. Gartner estimated worldwide enterprise application SaaS revenue at $218.5 billion, a 16.7% year-over-year increase. The figures below show where that spending was concentrated, how major vendors performed, and how subscription businesses measured customers, recurring revenue, backlog, and cash generation.
Contents
- SaaS market size and application mix
- Revenue and recurring-revenue leaders
- Enterprise customers and contract value
- Cloud platforms and backlog
- Commerce, collaboration, and marketing SaaS
- SaaS profitability and cash generation
SaaS market size and application mix
Gartner’s Market Share Alert: Enterprise Application SaaS Market Reaches $218B in 2024, Worldwide estimated the enterprise application SaaS market at $218.5 billion in 2024. That was 16.7% higher than the prior year, making market expansion one of the clearest signals in the dataset.
The market was concentrated in two major application categories. Gartner’s Market Share: Enterprise Application Software as a Service, Worldwide, 2024 said customer relationship management, or CRM, accounted for 51.4% of total SaaS revenue. Enterprise resource planning, or ERP, accounted for another 20.2%. Together, those categories represented 71.6% of the stated 2024 SaaS revenue mix.
Gartner’s Market Share: Enterprise Application Software, Worldwide, 2024 identified Microsoft, Salesforce, and SAP as the top three vendors by revenue in enterprise application software in 2024. A separate Gartner report, Market Share: Enterprise Software, Worldwide, said cloud subscription revenue represented 60.1% of the overall enterprise software market in 2024.
These measurements cover different Gartner market definitions, so the enterprise application SaaS total and the broader enterprise software subscription share should not be treated as interchangeable. They do, however, point in the same direction: recurring cloud delivery had become a central model for business software.
Revenue and recurring-revenue leaders
Public-company results show how the market total translated into individual vendor scale. Salesforce reported fiscal 2024 revenue of $34.86 billion, up 11% year over year, in Salesforce FY24 results. Its fourth-quarter fiscal 2024 revenue was $9.29 billion, also up 11%. Salesforce reported $27.6 billion in current remaining performance obligation, a 12% year-over-year increase.
Salesforce also reported $10.2 billion in fiscal 2024 operating cash flow, up 44% year over year, and a 30.5% non-GAAP operating margin. Those figures describe the company’s fiscal 2024 results rather than the entire SaaS market.
Workday reported $7.3 billion in fiscal 2024 total revenue, up 17% year over year, in Workday FY24 results. Subscription revenue reached $6.6 billion, up 19%. In the fourth quarter, Workday reported $1.9 billion in total revenue, up 17%, and $1.8 billion in subscription revenue, up 18%. Fiscal 2024 operating cash flow was $2.1 billion, up 30% year over year.
Atlassian reported fiscal 2024 revenue of $4.4 billion and cloud revenue of $2.7 billion in Atlassian FY24 results. The company also reported more than $1.4 billion in free cash flow. These figures show the weight of cloud delivery within a collaboration and productivity software business, although the supplied results do not state cloud revenue as a percentage of total revenue.
| Company and period | Reported revenue measure | Growth or scale measure |
|---|---|---|
| Salesforce, fiscal 2024 | $34.86 billion total revenue | 11% year over year |
| Workday, fiscal 2024 | $6.6 billion subscription revenue | 19% year over year |
| Atlassian, fiscal 2024 | $2.7 billion cloud revenue | $4.4 billion total revenue |
| HubSpot, full-year 2024 | $2.57 billion subscription revenue | 21% year over year |
| Semrush, 2024 | $411.6 million annual recurring revenue | 22% year over year |
HubSpot ended 2024 with 247,939 customers, up 21% year over year, according to HubSpot 2024 results. It reported $2.63 billion in full-year revenue, also up 21%, and $2.57 billion in full-year subscription revenue, up 21%. HubSpot’s 2024 proxy statement said annual recurring revenue was nearly $2.9 billion.
Enterprise customers and contract value
Customer counts reveal a second dimension of SaaS scale: the distribution between broad adoption and large contracts. ServiceNow reported 2,109 customers with more than $1 million in annual contract value as of December 31, 2024, up 12% year over year, in ServiceNow Q4 and Full-Year 2024 Results. Nearly 500 customers had more than $5 million in annual contract value, up 21% year over year.
ServiceNow’s Annual Report 2024 reported $22.3 billion in remaining performance obligations as of December 31, 2024. It said 46% of those obligations were current. The date matters because both the contract-value customer counts and the performance-obligation balance are point-in-time measurements.
Atlassian surpassed 300,000 customers in fiscal 2024, according to Atlassian FY24 results. Within that base, 524 customers spent more than $1 million annually, up 48% year over year. The contrast between total customers and million-dollar customers illustrates how a SaaS vendor can combine a large installed base with a smaller, rapidly growing group of high-value accounts.
Zoom reported approximately 220,400 enterprise customers as of January 31, 2024, in Zoom FY24 annual report. It had 3,810 customers contributing more than $100,000 of trailing 12-month revenue on that date. Zoom said revenue from those customers represented 29.2% of total fiscal 2024 revenue.
HubSpot’s customer economics were measured differently. Its fourth-quarter 2024 average subscription revenue per customer was $11,312, down 0.5% year over year. Full-year average subscription revenue per customer was $11,343, down from $11,384 in 2023, according to HubSpot 2024 annual report.
Cloud platforms and backlog
SAP reported 2024 cloud revenue of €17.21 billion, up 26% at constant currencies, in its 2024 annual report. Cloud and software revenue was €29.96 billion, up 11% at constant currencies, while total revenue was €34.31 billion, up 10% at constant currencies. SAP said cloud and software represented 87% of total revenue and services revenue was €4.346 billion, or 13% of total revenue.
SAP’s total cloud backlog reached €63.29 billion at December 31, 2024, up 43% year over year. Its Cloud ERP Suite generated €14.166 billion in 2024 revenue, up 33% year over year, and SAP said the suite contributed 83% of overall cloud revenue. The company also said customers using more than four SAP solutions had more than doubled since 2021 and represented more than 20% of its customer base in 2024.
Oracle reported fourth-quarter fiscal 2024 cloud revenue of $5.3 billion, up 20% in both U.S. dollars and constant currency, in Oracle Q4 FY24 results. Fourth-quarter NetSuite Cloud ERP revenue was $0.8 billion, up 19% in both measures. For fiscal 2024, Oracle reported $53.0 billion in total revenue, up 6%, and $39.4 billion in cloud services and license support revenue, up 12% in U.S. dollars and 11% in constant currency. Short-term deferred revenues were $9.3 billion.
The currency basis is important for SAP and Oracle. Constant-currency growth is an analytical measure that removes currency movement; it is not the same as a reported growth rate in the company’s presentation currency.
Commerce, collaboration, and marketing SaaS
Shopify reported 2024 revenue of $8.9 billion, up 26% year over year, in its 2024 annual report. Gross merchandise volume was $292.3 billion, up 24%. Shopify said its merchants operated in more than 175 countries, and more than 875 million unique online shoppers purchased from a Shopify brand during 2024.
Shopify also said the platform surpassed $1 trillion in cumulative gross merchandise volume processed in 2024. That cumulative figure covers the platform’s history through the stated milestone, while the $292.3 billion figure measures the 2024 year. Shopify reported $1.6 billion in 2024 free cash flow and an 18% free-cash-flow margin, up 500 basis points from 2023.
Zoom reported fiscal 2024 total revenue of $4.527 billion, up 3.1% year over year, and fourth-quarter revenue of $1.1465 billion, up 2.6%, in Zoom FY24 results. Enterprise revenue was $2.6193 billion, up 8.7%. The difference between total and enterprise growth shows that the enterprise segment expanded faster than Zoom’s overall reported revenue during that fiscal year.
Semrush reported 2024 revenue growth of 22% year over year and annual recurring revenue of $411.6 million as of December 31, 2024, up 22%, according to Semrush 2024 annual report. Vertex reported 4,915 direct customers at December 31, 2024, and average annual revenue per customer of approximately $122,706 in Vertex FY24 annual report.
HubSpot’s 2024 annual report added a channel perspective: customers referred by solutions partners represented approximately 29% of customers as of December 31, 2024, but approximately 48% of 2024 revenue. That difference indicates that partner-referred customers were associated with a higher share of revenue than of customer count, without establishing why.
SaaS profitability and cash generation
Cash-flow figures provide a view of SaaS performance alongside revenue and customer growth. Salesforce generated $10.2 billion in fiscal 2024 operating cash flow, up 44% year over year, and reported a 30.5% non-GAAP operating margin. Workday generated $2.1 billion in fiscal 2024 operating cash flow, up 30%.
Atlassian reported more than $1.4 billion in fiscal 2024 free cash flow. Shopify reported $1.6 billion in 2024 free cash flow and an 18% margin. These are not directly comparable accounting measures: operating cash flow and free cash flow use different definitions, and Salesforce’s non-GAAP operating margin is a non-GAAP profitability measure.
The combined statistics describe a market with several layers of scale. Gartner’s $218.5 billion enterprise application SaaS estimate provides the market-level view. Salesforce, SAP, Oracle, and Workday show billion-dollar subscription and cloud businesses. HubSpot, Atlassian, Zoom, Semrush, Vertex, and Shopify show how SaaS models extend across marketing, collaboration, communications, commerce, and specialized software. Customer counts, recurring revenue, deferred revenue, backlog, and performance obligations then show how future contracted activity is represented in company reporting.