Year-old companies are turning down billion-dollar buyouts in the hopes of multibillions in a few months. But we have seen similar industry phases before, and they have often ended with growth and valuations fizzling out. The industry’s booms and busts make growth, an essential ingredient in value creation, difficult to understand. To date, little empirical work has been done on the importance of revenue growth for software and Internet-services companies or how to find new sources of growth when old ones run out.
MckinseyThe 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
Improve Your Pricing Schedule And Turn More Profit
Investment in marketing automation tools is expected to reach $25 billion by the year 2023
Negative Churn and Expansion Revenue
Companies with longer contracts (2+ years) reported the lowest annual unit churn
Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)
Investment in marketing automation tools is expected to reach $25 billion by the year 2023
A 1% increase in pricing strategy yields an average 11% increase in profit
SaaS organizations are now operating in over 100 countries
Negative Churn and Expansion Revenue
They may forget what you said, but they will never forget how you made them feel.
For SaaS companies valued at over $1billion, the median amount of financing raised is $206million