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

Statistic Info

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn. Companies with shorter contracts (under 2 years) saw increased dollar churn compared to last year; contracts 2 years or longer were relatively consistent with prior survey results.

More SaaS + Software Stats

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

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

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.

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

SaaS IPOs have more than doubled over the last 12 years

More than 1/2 of SAAS companies increased their spending on customer retention last year

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

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

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

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

More Growth Strategy Stats

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

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

Negative Churn and Expansion Revenue

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

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

56% treat “Existing Customer Renewals” as high priority

Women in western countries use the internet 17 percent more than their male counterparts

Growing faster has twice as much impact on share price as improving margins

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

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