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

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

When venture capitalists participate in seed rounds, the average round size is 3x larger

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

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

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

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

How To Make Pricing A Constant Process In Your Organization

More Growth Strategy Stats

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

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

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

Google only has a 30 percent female workforce

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

Three uses for the SaaS Guidelines

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

How To Make Pricing A Constant Process In Your Organization