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When removing the smallest companies from the distribution, we find growth rates for companies using mainly Internet distribution lagged. Companies with mixed distribution strategies appear to be more agile and reported the highest growth. There was no distinguishable difference between growth rates for field sales vs. inside sales dominated companies. Rates are largely in line with last year’s survey.

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

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

SaaS IPOs have more than doubled over the last 12 years

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

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%

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

More Growth Strategy Stats

Customer Segmentation analysis will help point out which are your most profitable segments

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

Cloud application services (SaaS) to reach $126 billions by the end of 2021

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

Analyzed 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

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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