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 global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

How to Reduce Churn

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

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

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

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

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

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

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

More Growth Strategy Stats

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

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

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

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

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

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

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

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher