Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)


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You need to be thinking about how the length of each contract will affect churnin a given period when you calculating renewal rate.

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More SaaS & Tech Growth Strategy Stats

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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

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

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

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

54% treat upselling and add-on sales as high priority

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

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

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

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