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%

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

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

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

When venture capitalists participate in seed rounds, the average round size is 3x larger

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

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

Internet Sales strategies have a significantly lower CAC of just $0.42

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

More Growth Strategy Stats

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

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

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%”

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

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

56% treat “Existing Customer Renewals” as high priority

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

55% of SaaS companies rate Customer Retention as the key metric to measure

A University of Texas study showed that women ask for $7,000 less than their male counterparts in job interviews

Women in western countries use the internet 17 percent more than their male counterparts