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%

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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.

More SaaS + Software Stats

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

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

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

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

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

SaaS IPOs have more than doubled over the last 12 years

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

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

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

More Growth Strategy Stats

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

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

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

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

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

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

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

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

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time