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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.
As contract sizes increase, gross dollar churn consistently trends downwards (presumably related to longer contract terms). This year’s results were largely consistent with last year’s. However, churn trended up markedly for the smaller size contract groups (<$5K median ACV).
For Entrepreneurs.com
More SaaS + Software Stats
SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer
The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8
At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR
More Growth Strategy Stats
Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000
After $10M in ARR, the median growth rate slows to just under 50%
A 1% increase in pricing strategy yields an average 11% increase in profit
36% of SaaS businesses managed to reduce their revenue churn over the last 12-months