It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

SaaS + Software
Statistic in Growth Strategy

Statistic Info

•PLG companies use product to drive user acquisition, expansion and retention

•PLG products are extremely sticky -people log in regularly and users share the products with colleagues and friends

•These businesses tend to boast amazing NPS scores

•The virality of user adoption and significant goodwill built with users enables PLG business to successfully (and efficiently) accelerate growth via cross-sell / upsell over time


More SaaS + Software Stats

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

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

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

Cloud application services (SaaS) to reach $126 billions by the end of 2021

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

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

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%)

More Growth Strategy Stats

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

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

At Twitter, 10 percent of tech roles are staffed by women

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

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

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

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

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