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

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As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn. Companies with shorter contracts (under 2 years) saw increased dollar churn compared to last year; contracts 2 years or longer were relatively consistent with prior survey results.

By definition, non-renewal rates are higher than gross dollar churn rates. However, it is interesting to see that the non-renewal rates are also higher for shorter duration contracts.

More Growth Strategy Stats

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

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

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

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

Women in western countries use the internet 17 percent more than their male counterparts

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

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%