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

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.

More SaaS + Software Stats

The median annual unit churn for SAAS companies was 10% in 2016

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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%)

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.

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

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

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

More Growth Strategy Stats

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

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

Software and online services are in a period of dizzying growth

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

The top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling