Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

Statistic Info

High-growth companies scale their teams very quickly. In fact, the companies in the sample set grew their teams by 56% annually over five years, which nets out to about 8.5x growth, from 204 employees to 1750 employees on the median.

Despite the massive growth of these organizations, the best companies are able to maintain or even accelerate their revenue per employee. In fact, increases in revenue per employee as a company scales is an incredibly positive sign of the health of the business. It indicates that the company is achieving economies of scale. Those economies of scale may exist as a consequence of a strong brand, monopoly-like characteristics within their market segment, improving sales efficiency, increases in contract size, better rates of customer upsells, etc. But in all cases, it’s a hallmark of a company whose economics are improving with time.

More SaaS + Software Stats

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

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

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

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

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

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

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

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

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

More Growth Strategy Stats

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

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

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

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

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

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

At Twitter, 10 percent of tech roles are staffed by women