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The SaaS industry’s market capitalization in 2020 is approximately $110 Billion and is expecting a growth of 14.5% in the next year. And by the year 2022, it is expected to reach $143 billion. Services that are seeing most adoption by the companies include cloud consulting, implementation, migration, and management.

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In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

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

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

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Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

Customer Segmentation analysis will help point out which are your most profitable segments

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

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

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

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

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