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 SaaS & Tech 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

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Negative Churn and Expansion Revenue

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

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

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

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

SaaS IPOs have more than doubled over the last 12 years

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

More SaaS & Tech Growth Strategy Stats

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

How To Make Pricing A Constant Process In Your Organization

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

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

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

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

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