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

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

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

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

More Growth Strategy Stats

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

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

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

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

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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

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

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.