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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).

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The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

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

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

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

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

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

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

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

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

Internet Sales strategies have a significantly lower CAC of just $0.42

More Growth Strategy Stats

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

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

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

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

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

80% of venture capital investments take place in the enterprise

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

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

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