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

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The median average contract length is 1.3 years. The median billing term is seven months in advance. These results are very comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing one month over 2015 to seven months.

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Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

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

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

SaaS organizations are now operating in over 100 countries

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

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

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

The median SaaS business loses about 10% of its revenue to churn each year and that works out to about 0.83% revenue churn a month

More SaaS & Tech Growth Strategy Stats

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

How To Make Pricing A Constant Process In Your Organization

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

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

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