The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11%

From RJMetrics
Quote in SaaS & Tech Growth Strategy

Upsells key to growth and scale

As shown in the chart below, companies that have made it past the $40MM revenue mark use upsells to drive a much higher percentage of their new Average Contract Value (ACV) than smaller companies. In fact, companies in the $40-75MM revenue range attribute twice as much new revenue to upsells as the median company.

Of course, it’s dangerous to imply causation here. There are a number of reasons why we might see this effect in later-stage companies. One unexciting possibility is that their overall growth in new business is slowing down and it’s skewing these percentages in favor of upsells. Let’s look at this data through another lens and explore how upsells are related to growth.

More SaaS + Software Stats

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

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

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.

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

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

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

Companies with longer contracts (2+ years) reported the lowest annual unit churn

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

When venture capitalists participate in seed rounds, the average round size is 3x larger

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

More SaaS & Tech Growth Strategy Stats

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

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

It’s essential to have a point of view that puts a stake in the ground and breaks through the clutter.

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

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

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

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