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In comparison to previous surveys, it appears there is more confidence in inside sales in the $1K-$25K range.

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More SaaS + Software Stats

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

Software and online services are in a period of dizzying growth

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

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

55% of SaaS companies rate Customer Retention as the key metric to measure

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

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

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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

More Growth Strategy Stats

Is your SaaS business viable?

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

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

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

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales