Statistic Info

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.

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

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

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

Analysed 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

SaaS IPOs have more than doubled over the last 12 years

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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SaaS solutions have the highest security features with 95% security failures due to human error

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

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

Invention is 10% inspiration and 90% perspiration.

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

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

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

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

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