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

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The top SAAS companies have a LTV to CAC (the Cost to Acquire a typical Customer) ratio that is higher than 3

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How To Make Pricing A Constant Process In Your Organization

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

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

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

Software and online services are in a period of dizzying growth

The median annual unit churn for SAAS companies was 10% in 2016

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

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

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

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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

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

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

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

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

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

SaaS IPOs have more than doubled over the last 12 years

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

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

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”