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

SaaS IPOs have more than doubled over the last 12 years

Companies with longer contracts (2+ years) reported the lowest annual unit churn

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

Software and online services are in a period of dizzying growth

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

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

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

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

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

More Growth Strategy Stats

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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

Improve Your Pricing Schedule And Turn More Profit

80% of venture capital investments take place in the enterprise

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

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

Cloud-hosted applications have a 99% uptime

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month