Quote Info
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.
Mckinsey
More SaaS + Software Stats
The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013
Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts
High-growth companies offer a return to shareholders 5 times greater than medium-growth companies
The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.
Growing faster has twice as much impact on share price as improving margins