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 TonguzSaaS organizations are now operating in over 100 countries
The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18
The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%
The median annual unit churn for SAAS companies was 10% in 2016
High-growth companies generate 60% fewer sales opportunities than low-growth companies
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Cloud application services (SaaS) to reach $126 billions by the end of 2021