The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

SaaS + Software
Statistic in Growth Strategy

Statistic Info

As expected, many of the fastest growing companies are among the smallest. Eliminating them brings median growth rates down ~10 percentage points. Median growth rates are consistent with last year’s results. However, this year’s respondent pool was more evenly distributed.

Survey results indicate that companies in the $7.5MM-$15MM range are among the fastest growers. The median growth in this range is much greater than the median of companies half their size. Interestingly, there was a similar bump-up last year, but for companies between $5MM-$7.5MM.

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More SaaS + Software Stats

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

80% of venture capital investments take place in the enterprise

55% of SaaS companies rate Customer Retention as the key metric to measure

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

SaaS solutions have the highest security features with 95% security failures due to human error

Negative Churn and Expansion Revenue

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

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More Growth Strategy Stats

The average SaaS company spends just 6 hours determining their pricing strategy

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

Cloud-hosted applications have a 99% uptime

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

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

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

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

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

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

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%”

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