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

SaaS + Software
Statistic in SaaS & Tech Growth Strategy

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

How to Reduce Churn

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

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

Companies with longer contracts (2+ years) reported the lowest annual unit churn

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

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

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

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

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

More SaaS & Tech Growth Strategy Stats

Google only has a 30 percent female workforce

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

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

Growing faster has twice as much impact on share price as improving margins

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

Looking for SaaS focused services?
SaaS Website Design
SaaS SEO Agency