If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

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.

More SaaS + Software Stats

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

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

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

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

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

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

Three uses for the SaaS Guidelines

More Growth Strategy Stats

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

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

Companies with longer contracts (2+ years) reported the lowest annual unit churn

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

in 2016, women-led companies received $1.46 billion in investments from venture capitalists. Male-led companies, on the other hand, received $58.2 billion

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

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews