SaaS organizations are now operating in over 100 countries

SaaS + Software
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There is no question, the SaaS industry is growing globally and across platforms.

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How To Make Pricing A Constant Process In Your Organization

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

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

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

56% treat “Existing Customer Renewals” as high priority

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

More SaaS & Tech Growth Strategy Stats

How Often Should The Pricing Committee Be Meeting And Making Changes?

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

56% treat “Existing Customer Renewals” as high priority

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

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

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

A 1% increase in pricing strategy yields an average 11% increase in profit

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

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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