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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More SaaS + Software Stats

SaaS IPOs have more than doubled over the last 12 years

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

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

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

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

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

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

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

The median annual unit churn for SAAS companies was 10% in 2016

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

More Growth Strategy Stats

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

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

Google only has a 30 percent female workforce

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

Software and online services are in a period of dizzying growth

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

September 19, 2019 Seminar

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