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

SaaS + Software
Statistic in SaaS & Tech Growth Strategy

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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.

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In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

How Often Should The Pricing Committee Be Meeting And Making Changes?

The 2015 median revenue growth rate was 44%, while the median projected growth rate for 2016 is 48%

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

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.

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

The global cloud computing market size is expected to grow from USD 371.4 billion in 2020 to USD 832.1 billion by 2025

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

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

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

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

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

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

Cloud-hosted applications have a 99% uptime

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

56% treat “Existing Customer Renewals” as high priority

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

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

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