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

SaaS + Software
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Many of the enterprises across verticals have adopted the work from home model to safeguard employee well-being and maintain operational efficiency, surging the demand for Software-as-a-Service (SaaS)-based collaboration solutions. For instance, Microsoft Team platform users increased to 44 million globally due to the high demand for collaboration solutions. While the standalone 8×8 Video Meetings cloud solution experienced a more than 300% increase in registered users in the last week of February across ~150 countries. Other popular SaaS-based collaboration tools gaining traction are Google Hangouts, Cisco Webex, Slack, Zoom, Ding Talk, WeChat Work, and Tencent Meeting, among others.

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A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

Three uses for the SaaS Guidelines

After $10M in ARR, the median growth rate slows to just under 50%

The average Quick Ratio of fastest growing SaaS companies (those with a CAGR of over 50%) is 3.9: generating $3.9 in revenue for every $1 lost to revenue churn

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%

SAAS companies with >$250K median ACV book nearly 25% of their contracts at 3 years or longer

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

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

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

56% treat “Existing Customer Renewals” as high priority

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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

For SaaS companies valued at over $1billion, the median amount of financing raised is $206million

Growing faster has twice as much impact on share price as improving margins

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

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

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

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

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

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