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.

More SaaS + Software Stats

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

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

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

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

56% treat “Existing Customer Renewals” as high priority

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

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

More Growth Strategy Stats

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

High-growth companies offer a return to shareholders 5 times greater than medium-growth companies

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

The average SaaS company spends just 6 hours determining their pricing strategy

Revenue per employee has been steadily increasing in SAAS companies. It serves as a great longitudinal measuring stick to understand the increasing or decreasing efficiency of the business

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

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