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

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.

SaaS & Tech Growth Strategy Articles

• The Vision Gap
• What's the difference between marketing and strategic marketing?
  Marketing and strategic marketing is sort of like the difference between a piece of cheese and using that piece of cheese to make some delicious lasagna.
• Evaluating Your Software Brand Positioning Through SWOT Analysis
  It's Strategic Planning month here at Insivia, so we're continuing our conversation about planning for next year.
• Brand Strategy Framework
  A Framework for Creating A Smart Brand StrategyA brand is so much more than a logo.It's what makes you unique and how you communicate that to prospects, customers, and employees to inspire them to take action.We've developed a Brand Strategy Framework to drive marketing, sales, recruiting, and raising capital.A smart Brand Strategy is central to […]
• 10 Reasons Your Customers Are Churning
  Churn is a death knell for any business. Make sure you aren't making any of these common reasons your customers are churning.
• Sharing Your Vision With Your Customers
  How can you share your vision with your customers? Andy shares his recommendations on bridging the customer gap.
• Make Tactical Goals Part of Your Vision
  When it comes to your business, you're probably planning a lot of different things - your next marketing move, your newest product, or making an acquistion. But not many businesses spend time planning out how to achieve goals.In fact, a lot of people leave this critical step out during their visions.After all, when most people […]
• Organization Structure Planning
  In this Insivia insight, Andy points out how important organization structure planning is to your long term goals. Unless you are a sole proprietor working alone, you team will be a vital part of your growth and success. Incorporating them into your plan will not only help them see how all of the pieces fit […]
• Tools For Bridging The Culture Gap
  How can you bridge the culture gap? Andy shares a few examples of tools you can use to help make sure your team is aligned to your vision and working towards the same goal.

SaaS + Software Stats

• The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%
• The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%
• Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales
• Companies with longer contracts (2+ years) reported the lowest annual unit churn
• Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month
• 55% of SaaS companies rate Customer Retention as the key metric to measure
• Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there
• In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales
• Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

SaaS & Tech Growth Strategy Stats

• In 2017, the global adoption rate for biotech soybean amounted to 77 percent.
• If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business
• Internet Sales strategies have a significantly lower CAC of just $0.42
• 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
• Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added
• More than two thirds of SAAS companies experienced annual churn rates of 5% or higher
• Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less
• The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year