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%

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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SaaS + Software Stats

• 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
• The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.
• The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%
• Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month
• As SaaS companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth
• In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales
• As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn
• Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers
• The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

Market Research Stats

• Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less
• The average SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers
• Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added
• Cloud application services are expected to grow at an average annual rate of 18.5% through 2025
• The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18
• In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.
• Investment in marketing automation tools is expected to reach $25 billion by the year 2023
• 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%)
• Over the past five years, the Global Biotechnology industry has grown by 2.0% to reach revenue of $301bn in 2019.