SaaS companies in the $7.5MM-$15MM range are among the fastest growers

Statistic Info

As expected, many of the fastest growing companies are among the smallest. Eliminating them brings median growth rates down ~10 percentage points. Median growth rates are consistent with last year’s results. However, this year’s respondent pool was more evenly distributed.

Survey results indicate that companies in the $7.5MM-$15MM range are among the fastest growers. The median growth in this range is much greater than the median of companies half their size. Interestingly, there was a similar bump-up last year, but for companies between $5MM-$7.5MM.

More SaaS + Software Stats

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

Negative Churn and Expansion Revenue

More than 1/2 of SAAS companies increased their spending on customer retention last year

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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

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

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

More Growth Strategy Stats

Google only has a 30 percent female workforce

56% treat “Existing Customer Renewals” as high priority

Software and online services are in a period of dizzying growth

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

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

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

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers