73% of organizations indicated nearly all their apps will be SaaS by 2021

SaaS + Software
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SaaS growth rates are astonishing; just between 2015 and 2017, the number of SaaS apps averagely used by organizations doubled up from 8 to 16. This upward trend will continue as 73% of businesses have said all of their apps will be SaaS by 2020.

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

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

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

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

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

Is your SaaS business viable?

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

More Growth Strategy Stats

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

Invention is 10% inspiration and 90% perspiration.

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

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

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

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

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

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

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

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

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