Statistic Info

The median annual contract size (subscription component only) for the group was $25K per year. These results are somewhat above the previous survey medians of $21K, $21K, $20K in 2015, 2014 and 2013, respectively.

The median average contract length is 1.3 years. The median billing term is seven months in advance. These results are very comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing one month over 2015 to seven months.

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More SaaS + Software Stats

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

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

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

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

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

More Growth Strategy Stats

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

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

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

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

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

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

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

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

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