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There is no question, the SaaS industry is growing globally and across platforms.
The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%
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
Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases
High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.
Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less
If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business
The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers
The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year
In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales
At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR
If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years
Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.
Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month
Cloud application services (SaaS) to reach $126 billions by the end of 2021
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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
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
The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer
The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%
SAAS companies that are focused mainly on enterprise sales have higher levels of professional services
