Not having a big company signed is not inherently bad. Going after small business can be a valid strategy (i.e. Salesforce) but it sounds like there wasn't healthy growth or the right relationships to support this path.
> ... engineering directly raising concerns to the CEO, and suggesting to focus on larger customers, fewer customizations, and bring in more revenue. Sales, however, wanted the opposite: close many deals and hit their targets of signups. In the end, sales got their way, ...
If the product is customized for nearly every customer, they've degenerated to a de facto consulting shop.