Statistic Info

There’s a lot to pay attention to when measuring the growth trajectory of your SaaS business. Are you increasing LTV while keeping CAC down? Is your customer acquisition rate greater than your customer churn rate? Do you distinguish between monthly recurring revenue and committed monthly recurring revenue?

Answering these questions is no easy task-SaaS metrics are extremely nuanced, and it can be hard to figure out exactly how to get the most complete and realistic understanding of your company’s growth, even if you have a few Harvard MBA’s on hand to model everything out.

InsightSquared

More SaaS + Software Stats

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

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

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

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

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

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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

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%

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

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

More Growth Strategy Stats

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

54% treat upselling and add-on sales as high priority

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

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

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

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

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

Google only has a 30 percent female workforce

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.