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

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

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

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

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

More Growth Strategy Stats

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

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

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

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

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

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

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

80% of venture capital investments take place in the enterprise

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.