Statistic Info

When we looked at the fastest growing SaaS companies in our study (those with a CAGR of over 50%) we found an average Quick Ratio of 3.9.

These SaaS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn. They are, in other words, exactly the type of SaaS startup that Mamoon looks for when deciding where to invest.

And, as their high Quick Ratio implies, they have a great chance to continue growing quickly and healthfully, and eventually become one of those fabled SaaS companies with a run rate of more than $10 million.

InsightSquared

More SaaS + Software Stats

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

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

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

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

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

Companies with longer contracts (2+ years) reported the lowest annual unit churn

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

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

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

More Growth Strategy Stats

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

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

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

How Often Should The Pricing Committee Be Meeting And Making Changes?

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017