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

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

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

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

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

More Growth Strategy Stats

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Google only has a 30 percent female workforce

SaaS organizations are now operating in over 100 countries

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

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

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

80% of venture capital investments take place in the enterprise

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

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