Statistic Info

In the past, we have benchmarked the revenue per employee of large publicly traded SaaS companies and determined that the average is about $200k of revenue per person. But, that analysis examined revenue per employee that only one point in time.

High-growth companies scale their teams very quickly. In fact, the companies in the sample set grew their teams by 56% annually over five years, which nets out to about 8.5x growth, from 204 employees to 1750 employees on the median.

Despite the massive growth of these organizations, the best companies are able to maintain or even accelerate their revenue per employee. In fact, increases in revenue per employee as a company scales is an incredibly positive sign of the health of the business. It indicates that the company is achieving economies of scale. Those economies of scale may exist as a consequence of a strong brand, monopoly-like characteristics within their market segment, improving sales efficiency, increases in contract size, better rates of customer upsells, etc. But in all cases, it’s a hallmark of a company whose economics are improving with time.

Tomasz Tonguz

More SaaS + Software Stats

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

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

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

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

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

56% treat “Existing Customer Renewals” as high priority

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

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

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

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

More Growth Strategy Stats

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

How To Make Pricing A Constant Process In Your Organization

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

SaaS organizations are now operating in over 100 countries

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

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

orecasts suggest that global blockchain technology revenues will experience massive growth in the coming years, with the market expected to climb to over 23.3 billion U.S. dollars in size by 2023.