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

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

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

Customer’s lifetime value (LTV)= average revenue per user (ARPU) / monthly churn rate

How To Make Pricing A Constant Process In Your Organization

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

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

Negative Churn and Expansion Revenue

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

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

More Growth Strategy Stats

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

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

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

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

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

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

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)