Quote Info

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.

SmartKarrot

More SaaS + Software Stats

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

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

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

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

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

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

Analyzed 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

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

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

More Growth Strategy Stats

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

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

56% treat “Existing Customer Renewals” as high priority

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

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

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

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

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