26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

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Survey results indicate that companies in the $7.5MM-$15MM range are among the fastest growers. The median growth in this range is much greater than the median of companies half their size. Interestingly, there was a similar bump-up last year, but for companies between $5MM-$7.5MM.

There doesn’t appear to be any relationship between median contract size and growth other than a bump-up for the <$1K and $15K-$25K groups (though this could be skewed by sparse data in those groups). Last year, the bump-up occurred for companies in the $100K-$250K AVC range.

More SaaS + Software Stats

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

SaaS IPOs have more than doubled over the last 12 years

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

More Growth Strategy Stats

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

Internet Sales strategies have a significantly lower CAC of just $0.42

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

54% treat upselling and add-on sales as high priority

A 1% increase in pricing strategy yields an average 11% increase in profit