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

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

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

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

80% of venture capital investments take place in the enterprise

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

Software and online services are in a period of dizzying growth

56% treat “Existing Customer Renewals” as high priority

More Growth Strategy Stats

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

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

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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