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

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

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

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

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

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

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

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

More Growth Strategy Stats

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

The average SaaS company spends just 6 hours determining their pricing strategy

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

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

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

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

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

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses