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.

Tomasz Tonguz

More SaaS + Software Stats

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

Negative Churn and Expansion Revenue

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

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

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

The median annual unit churn for SAAS companies was 10% in 2016

More Growth Strategy Stats

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

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

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

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

80% of venture capital investments take place in the enterprise

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

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

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

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