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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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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

Net-revenue churn improves with larger Average Contract Value (ACV), likely due to more structural churn among SMB customers and higher switching costs associated with larger contracts

Is your SaaS business viable?

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

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

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal

Software and online services are in a period of dizzying growth

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

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

More Growth Strategy Stats

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

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

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

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.

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

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

In all SaaS businesses there will likely come a moment where they realize that not all customers are created equal