Summary: Analyzing 8 top B2B companies reaching $1B ARR reveals minimal correlation between milestone speed and current market value — until a certain point. All were elite companies. Reaching $1B ARR requires excellence.
Factors like market TAM, business model, and post-$1B execution are more crucial than speed. Figma’s 13-year profitable journey could be equal to or more valuable than Snowflake’s 9-year sprint.
The Speed Focus in B2B
Speed metrics fascinate everyone. How fast can $1M ARR, $10M, $100M, or $1B ARR be achieved? We celebrate fast growth — like Snowflake’s 9-year $1B, Zoom’s rapid rise, and “fastest SaaS company ever” stories.
But is it that straightforward?
Examining 8 Elite SaaS Companies at $1B ARR
Top B2B companies reaching $1B ARR were studied for milestone time and current market values:
Speed Doesn’t Equal Value
Key observation: there’s little correlation between $1B ARR speed and market value.
- Snowflake (9 years) worth $65B
- Shopify (12 years) worth $108B—the highest
- Palantir (17 years) worth $35B, similar to HubSpot at 15 years
If speed mattered, Snowflake would lead valuations, and Palantir would lag behind. The reality is different.
Drivers of Long-Term Value
1. Market TAM Size
Shopify’s $108B valuation aligns with serving the vast global e-commerce market. Capturing a share of a trillion-dollar market scales revenue differently than subscription software.
2. Business Model Scalability
Transaction models (Shopify, Toast) differ from SaaS. Shopify earns from every sale by merchants, leading to revenue growth with customer success.
3. Market Timing
IPO timing and valuation weigh more than internal milestones. Figma’s 2025 IPO capitalized on a market valuing profitable growth. Palantir’s 2020 IPO happened during a growth-at-any-cost trend peak.
4. Post-$1B Execution
Post-$1B ARR actions are more vital than speed. Sustaining growth, expanding margins, and entering new markets define the real winners at a multi-billion scale.
The Advantage of Profitability
Another key pattern: only 4 of 8 companies were profitable at $1B ARR. Those included:
- Shopify: $108B
- Figma: $47B
- HubSpot: $37B
- Monday.com: $13B
Profitable companies average $51B in value, while unprofitable ones average $39B. While correlation isn’t causation, it highlights the importance of sustainable economics over growth speed.
Figma + Palantir: Patience Pays Off
Figma reached $1B ARR in 13 years—4 years longer than Snowflake. Yet, Figma achieved:
- 91% gross margins vs. Snowflake’s ~70%
- Profitability at scale with $44.9M Q1 net income
- 250% first-day IPO surge
- $47B market cap
Figma’s patient approach built solid economics, expanded beyond design, and achieved profitability before going public, earning a premium market valuation.
Palantir also took a long journey.
Different Markets Have Unique Dynamics
Not all B2B leaders