The Subscription Economy Index™ vs S&P 500 & U.S. Retail Sales
In 2022, the world economy was characterized by uncertainty and concerns about inflation, supply chain disruptions, and a potential global economic slowdown due to geopolitical tensions and the continued threat of COVID-19 variants. Recurring revenue business models have historically provided stability during these turbulent times.
Over the past 11 years, subscription-based companies in the SEI have grown 3.7x faster than the companies in the S&P 500, which have historically represented more traditional, product-based businesses. Specifically, the compound annual growth rate (CAGR) for SEI companies was 17%, compared to 4.6% for S&P 500 over the same period.