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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.

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More SaaS + Software Stats

Analysed 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

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

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

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

After $10M in ARR, the median growth rate slows to just under 50%

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

How to Reduce Churn

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

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

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

More Growth Strategy Stats

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

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

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

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

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

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

Invention is 10% inspiration and 90% perspiration.

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing