Statistic Info

Companies in the $40-75MM revenue range attribute twice as much new revenue to upsells as the median company.

There are a number of reasons why we might see this effect in later-stage companies. One unexciting possibility is that their overall growth in new business is slowing down and it’s skewing these percentages in favor of upsells. Let’s look at this data through another lens and explore how upsells are related to growth.

RJMetrics

More SaaS + Software Stats

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

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

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

The median annual unit churn for SAAS companies was 10% in 2016

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

As companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth, especially when the goal is to outpace it by 4x

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

Is your SaaS business viable?

80% of venture capital investments take place in the enterprise

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

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

47% of millennials want to work at diverse companies, according to a recent study.

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%

56% treat “Existing Customer Renewals” as high priority

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

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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

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

Three uses for the SaaS Guidelines