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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

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

How to Reduce Churn

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

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

SaaS solutions have the highest security features with 95% security failures due to human error

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

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

Internet Sales strategies have a significantly lower CAC of just $0.42

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

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

More Growth Strategy Stats

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

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

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

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

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

47% of millennials want to work at diverse companies, according to a recent study.

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

Google only has a 30 percent female workforce

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

Software and online services are in a period of dizzying growth