Software and online services are in a period of dizzying growth

SaaS + Software
Quote in SaaS & Tech Growth Strategy

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 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

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

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

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

How To Make Pricing A Constant Process In Your Organization

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.

More SaaS & Tech Growth Strategy Stats

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

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

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

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

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

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