Statistic Info

The SaaS landscape is ever changing, and its crucial for businesses to evolve their strategies and tactics -but without objective data on what works and what doesn’t, shifting strategies would be mere conjecture.

HubSpot

More SaaS + Software Stats

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

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

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

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%

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

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

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

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

More Growth Strategy Stats

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

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

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

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

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

54% treat upselling and add-on sales as high priority

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

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

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