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

SaaS + Software
Quote in SaaS & Tech Growth Strategy

Quote Info

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.

For Entrepreneurs.com

More SaaS + Software Stats

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

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

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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

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

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

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%

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

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

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

More SaaS & Tech Growth Strategy Stats

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

At Facebook, 15 percent of tech roles are staffed by women

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

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

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

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

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

Improve Your Pricing Schedule And Turn More Profit

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

Looking for SaaS focused services?
SaaS Website Design
SaaS SEO Agency
SaaS PPC