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Professional services play a minor role for most companies, with the median company booking P.S. revenues on new deals equivalent to 16% of first year subscription contract value. Median P.S. margins are approximately 22%. These results are consistent with last year’s results.

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

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

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

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

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

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

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

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

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Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

Improve Your Pricing Schedule And Turn More Profit

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

56% treat “Existing Customer Renewals” as high priority

Growing faster has twice as much impact on share price as improving margins

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

Analyzed 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

At Twitter, 10 percent of tech roles are staffed by women

More than 1/2 of SAAS companies increased their spending on customer retention last year