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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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More SaaS + Software Stats

After $10M in ARR, the median growth rate slows to just under 50%

High-growth companies generate 60% fewer sales opportunities than low-growth companies

Cloud-hosted applications have a 99% uptime

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

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

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

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

56% treat “Existing Customer Renewals” as high priority

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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

More Growth Strategy Stats

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

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

A 1% increase in pricing strategy yields an average 11% increase in profit

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

56% treat “Existing Customer Renewals” as high priority

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

Invention is 10% inspiration and 90% perspiration.

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.

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