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

Statistic Info

If a company were to maintain an aggressive 75% CAGR, it would take just over 5 years to hit that coveted milestone

Spend peaks during the expansion stage when companies rapidly build out their sales & lead generation teams

More SaaS + Software Stats

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

Negative Churn and Expansion Revenue

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

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

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

Three uses for the SaaS Guidelines

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

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

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

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

More Growth Strategy Stats

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

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

Negative Churn and Expansion Revenue

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

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

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