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

80% of venture capital investments take place in the enterprise

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

How Often Should The Pricing Committee Be Meeting And Making Changes?

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

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

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

More than 1/2 of SAAS companies increased their spending on customer retention last year

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

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

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%

More Growth Strategy Stats

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

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

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

Is your SaaS business viable?

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

Software and online services are in a period of dizzying growth

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

Google only has a 30 percent female workforce

More than 1/2 of SAAS companies increased their spending on customer retention last year

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network