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.

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More SaaS + Software Stats

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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

56% treat “Existing Customer Renewals” as high priority

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

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

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

More Growth Strategy Stats

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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

47% of millennials want to work at diverse companies, according to a recent study.

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.

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

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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

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions