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

From For Entrepreneurs.com
Statistic in SaaS & Tech Growth Strategy

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.

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Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

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After $10M in ARR, the median growth rate slows to just under 50%

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

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

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As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

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

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

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

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Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

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