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

SaaS + Software
Statistic in Growth Strategy

Statistic Info

IT Services Market

A key sub-sector of the larger information technology industry, the IT Services market brings in hundreds of millions of dollars each year, with forecasts suggesting that this number will eclipse the one trillion dollar mark in the near future. Unsurprisingly, given the amount of major tech companies located in the United States, North America is the highest regional consumer of IT services. Digitalization, along with essentially constant technological advancement, means that businesses in nearly every industry rely on IT services and market spending continues to grow steadily each year.

Statista

More SaaS + Software Stats

Customer Segmentation analysis will help point out which are your most profitable segments

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

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

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

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

56% treat “Existing Customer Renewals” as high priority

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.

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

73% of organizations indicated nearly all their apps will be SaaS by 2021

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

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

After $10M in ARR, the median growth rate slows to just under 50%

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

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

Software and online services are in a period of dizzying growth

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

Three uses for the SaaS Guidelines

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

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

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

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