Quote Info

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

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

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

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

54% treat upselling and add-on sales as high priority

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

Negative Churn and Expansion Revenue

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

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

More Growth Strategy Stats

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

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

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

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

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

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

July 11, 2019 Seminar

Marketing Uncovered: Market Research & Assessments To Win

Know Where You Stand To Reach Your Destination This seminar will give you a step-by-step approach to gathering information from prospects, assessing your current marketing, and evaluating competitors. These elements are key to creating a plan for successful marketing and we’ll be giving you a unique insight into how to get it done. During this […]


Details + Registration