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

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

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

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

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

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

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

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

Customer Segmentation analysis will help point out which are your most profitable segments

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

More Growth Strategy Stats

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

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

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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

High-growth companies generate 60% fewer sales opportunities than low-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 venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

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

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