Statistic Info

One way of measuring the efficiency of a company’s revenue model is to benchmark revenue per employee. Google and Facebook, the two most efficient companies, generate $1M per revenue per employee per year.

Setting aside those exceptional cases and focusing instead on SaaS companies, the typical average revenue per employee is about $190k to $210k per year.

Tomasz Tonguz

More SaaS + Software Stats

SaaS organizations are now operating in over 100 countries

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

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

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

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

More Growth Strategy Stats

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

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

Growing faster has twice as much impact on share price as improving margins

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

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

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

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

Negative Churn and Expansion Revenue

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time