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

HubSpot

More SaaS + Software Stats

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

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

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

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

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

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

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

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

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

Cloud-hosted applications have a 99% uptime

More Growth Strategy Stats

The average SaaS company spends just 6 hours determining their pricing strategy

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

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

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

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

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

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.

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

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