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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.

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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

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

SaaS solutions have the highest security features with 95% security failures due to human error

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

More than 1/2 of SAAS companies increased their spending on customer retention last year

80% of venture capital investments take place in the enterprise

The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

More Growth Strategy Stats

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

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%

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

Women in western countries use the internet 17 percent more than their male counterparts

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

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

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

SaaS IPOs have more than doubled over the last 12 years

How to Reduce Churn