Statistic Info

They are, in other words, exactly the type of SaaS startup that you should look for when deciding where to invest.

And, as their high Quick Ratio implies, they have a great chance to continue growing quickly and healthfully, and eventually become one of those fabled SaaS companies with a run rate of more than $10 million.

InsightSquared

More SaaS + Software Stats

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

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

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

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

Cloud-hosted applications have a 99% uptime

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

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases

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

More Growth Strategy Stats

Software and online services are in a period of dizzying growth

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

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

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

Investment in marketing automation tools is expected to reach $25 billion by the year 2023

73% of organizations indicated nearly all their apps will be SaaS by 2021

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years