Companies with longer contracts (2+ years) reported the lowest annual unit churn

From For Entrepreneurs.com
Quote in SaaS & Tech Growth Strategy

Reported median annual unit churn (by customer count) is 10% for the group. This median has remained relatively consistent with 2015 findings.

Not surprisingly, companies with longer contracts (2+ years) reported the lowest annual unit churn.

Median annual gross dollar churn (without the benefit of upsells) is ~8%. This result is comparable to past survey results (7% in 2015, 6% in 2014, 8% in 2013).

More SaaS + Software Stats

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

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

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

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

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

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

After $10M in ARR, the median growth rate slows to just under 50%

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

More SaaS & Tech Growth Strategy Stats

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%

At Twitter, 10 percent of tech roles are staffed by women

Internet Sales strategies have a significantly lower CAC of just $0.42

After $10M in ARR, the median growth rate slows to just under 50%

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

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

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