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

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.

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

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

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

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

More Growth Strategy Stats

orecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 23.3 billion U.S. dollars in size by 2023.

Invention is 10% inspiration and 90% perspiration.

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

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

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

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

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

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