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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

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

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

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

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

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

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

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

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

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

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

More Growth Strategy Stats

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

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%)

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

55% of SaaS companies rate Customer Retention as the key metric to measure

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 median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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

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

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.