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 Growth Strategy

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 average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

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

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

Is your SaaS business viable?

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

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

Internet sales-driven companies have a much greater reliance on marketing, with 65% of the median company’s CAC budget devoted to marketing

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

SaaS solutions have the highest security features with 95% security failures due to human error

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

More Growth Strategy Stats

56% treat “Existing Customer Renewals” as high priority

Cloud-hosted applications have a 99% uptime

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

The average SaaS company spends just 6 hours determining their pricing strategy

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

SaaS organizations are now operating in over 100 countries

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

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

Looking for SaaS focused services?
SaaS Website Design
SaaS SEO Agency
SaaS PPC