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.

More SaaS + Software Stats

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

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

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

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

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

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

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

More Growth Strategy Stats

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

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

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

How Often Should The Pricing Committee Be Meeting And Making Changes?

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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