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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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More SaaS + Software Stats

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

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

73% of organizations indicated nearly all their apps will be SaaS by 2021

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

More Growth Strategy Stats

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

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

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

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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