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.

For Entrepreneurs.com

More SaaS + Software Stats

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

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

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%)

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

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

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

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

More Growth Strategy Stats

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

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

At Facebook, 15 percent of tech roles are staffed by women

When venture capitalists participate in seed rounds, the average round size is 3x larger

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18