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

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.

More SaaS + Software Stats

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

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

How To Make Pricing A Constant Process In Your Organization

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

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

The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

55% of SaaS companies rate Customer Retention as the key metric to measure

More Growth Strategy Stats

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

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

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

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

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

Software and online services are in a period of dizzying growth

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

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

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