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

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.

More SaaS + Software Stats

SaaS IPOs have more than doubled over the last 12 years

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

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

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

54% treat upselling and add-on sales as high priority

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

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

Negative Churn and Expansion Revenue

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

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

More Growth Strategy Stats

47% of millennials want to work at diverse companies, according to a recent study.

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

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

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

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

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

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

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