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

SaaS + Software
Quote in Growth Strategy

Quote Info

When filtered by company size, smaller respondents 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.

For Entrepreneurs.com

More SaaS + Software Stats

The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

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

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

80% of venture capital investments take place in the enterprise

SaaS organizations are now operating in over 100 countries

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

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

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

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

More Growth Strategy 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

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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%)

SaaS IPOs have more than doubled over the last 12 years

Companies with longer contracts (2+ years) reported the lowest annual unit churn

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

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

Looking for SaaS focused services?
SaaS Website Design
SaaS SEO Agency
SaaS PPC