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

SaaS + Software
Statistic in Growth Strategy

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.

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More SaaS + Software Stats

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

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

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

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

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

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

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

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

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

More Growth Strategy Stats

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

At Facebook, 15 percent of tech roles are staffed by women

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

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

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

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

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

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