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

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

Growing faster has twice as much impact on share price as improving margins

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

SaaS IPOs have more than doubled over the last 12 years

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

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

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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

Analyzed 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

Three uses for the SaaS Guidelines

More Growth Strategy Stats

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

Companies with longer contracts (2+ years) reported the lowest annual unit churn

Invention is 10% inspiration and 90% perspiration.

55% of SaaS companies rate Customer Retention as the key metric to measure

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

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

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

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

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

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013