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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

SaaS organizations are now operating in over 100 countries

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

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

The best SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each 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 very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

More Growth Strategy Stats

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

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

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

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

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

A 1% increase in pricing strategy yields an average 11% increase in profit

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

The average SaaS company spends just 6 hours determining their pricing strategy

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18