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

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.

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

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

Negative Churn and Expansion Revenue

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

Customer Segmentation analysis will help point out which are your most profitable segments

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

More Growth Strategy Stats

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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

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

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

How to Reduce Churn

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics.

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%)