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

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.

More SaaS + Software Stats

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; this will become a major drag on growth

Customer Segmentation analysis will help point out which are your most profitable segments

Improve Your Pricing Schedule And Turn More Profit

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

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

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

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

More Growth Strategy Stats

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

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

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

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

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

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

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

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

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

Software and online services are in a period of dizzying growth