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

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

Analyzed 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

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

The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers

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

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

Negative Churn and Expansion Revenue

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

More than 1/2 of SAAS companies increased their spending on customer retention last year

More Growth Strategy Stats

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

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

80% of venture capital investments take place in the enterprise

How to Reduce Churn

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

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

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

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