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32% of respondents experienced an annual churn rate of 5% or less, while almost one-?fth had churn exceeding 15%. Survey responses suggest mixed results in controlling churn. While slightly over one-third report a decrease in churn over last year, 30% of respondents saw an increase in churn and the balance 34% saw no signi?cant change. Annualized Revenue Churn Rate 0-5% churn 5-10% churn 10-15% churn

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Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

After $10M in ARR, the median growth rate slows to just under 50%

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

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

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

More Growth Strategy Stats

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

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

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

When venture capitalists participate in seed rounds, the average round size is 3x larger

High-growth companies generate 60% fewer sales opportunities than low-growth companies

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

How to Reduce Churn