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

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

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

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

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%)

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

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

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

Three uses for the SaaS Guidelines

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

More Growth Strategy Stats

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

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

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.

At Facebook, 15 percent of tech roles are staffed by women

They may forget what you said, but they will never forget how you made them feel.

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

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

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

Improve Your Pricing Schedule And Turn More Profit

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%”