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

56% treat “Existing Customer Renewals” as high priority

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

Internet Sales strategies have a significantly lower CAC of just $0.42

SaaS IPOs have more than doubled over the last 12 years

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

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

Software and online services are in a period of dizzying growth

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

55% of SaaS companies rate Customer Retention as the key metric to measure

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

More Growth Strategy Stats

55% of SaaS companies rate Customer Retention as the key metric to measure

Negative Churn and Expansion Revenue

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

Three uses for the SaaS Guidelines

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

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

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

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

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

High-growth companies generate 60% fewer sales opportunities than low-growth companies