Hi -

It doesn't necessarily indicate limited growth potential. However, it does indicate that there must be some problem area(s) or problems with churn rates. SaaS is much like a startup and is very high risk to grow vs. traditional models.

It's also important to consider full life cycle of SaaS. Being able to support operations of the business efficiently is crucial. When it comes down to cost of doing business, capitalism will raise questions whether a company benefits to the economy.