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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

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

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

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

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

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

More Growth Strategy Stats

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

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

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

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

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

Negative Churn and Expansion Revenue