CLSA says AI not hurting SaaS revenue or profit forecasts
Business
Turns out, AI isn't messing with the money for software-as-a-service (SaaS) companies.
According to a fresh CLSA report, most SaaS firms are holding steady or even boosting their revenue and profit outlooks for the next year.
Some have actually beaten expected earnings in recent quarters, so business is still going strong.
SaaS shift to consumption pricing
The report highlights a move from seat-based to consumption-based pricing models as companies adapt to AI trends, but this hasn't slowed down profits or growth.
SaaS platforms that rely on precise outputs (like Systems of Record) are less likely to be disrupted by AI, while others face more risk.
Still, demand for SaaS and IT services remains solid, showing these firms know how to roll with tech changes.