Statistic Info

We wanted to find out, so as part of our 2016 Sales Benchmarking Report, we took a close look at the Quick Ratios of the high-growth SaaS companies in our study. We sliced the data in every conceivable way to see what we could uncover about the optimal Quick Ratio for growing SaaS companies, and how the SaaS Quick Ratio evolves as companies grow.

InsightSquared

More SaaS + Software Stats

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

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

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

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

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

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

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

Internet Sales strategies have a significantly lower CAC of just $0.42

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

More Growth Strategy Stats

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

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

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

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

Cloud-hosted applications have a 99% uptime

SaaS IPOs have more than doubled over the last 12 years

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

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

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

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