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The lower Quick Ratio for these larger, more mature companies is�further proof that the Quick Ratio looks quite a bit�different when used to�evaluate young SaaS startups and more mature,�steady-state companies.

InsightSquared

More SaaS + Software Stats

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

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

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

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

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

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

SaaS IPOs have more than doubled over the last 12 years

More Growth Strategy Stats

Three uses for the SaaS Guidelines

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

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

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

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

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

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

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

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)