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.

For Entrepreneurs.com

More SaaS + Software Stats

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

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

When venture capitalists participate in seed rounds, the average round size is 3x larger

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

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

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

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

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

More Growth Strategy Stats

Negative Churn and Expansion Revenue

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?

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

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

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

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

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

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%