Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

SaaS + Software
Statistic in Growth Strategy

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

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

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%)

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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%

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

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

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

More Growth Strategy Stats

Invention is 10% inspiration and 90% perspiration.

47% of millennials want to work at diverse companies, according to a recent study.

Software and online services are in a period of dizzying growth

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

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

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

Improve Your Pricing Schedule And Turn More Profit

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

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

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

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