The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months

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The phenomenon of longer contract terms for larger contracts is pretty clear. Companies in the “elephant hunter” group are less aggressively booking super long-term contracts. Respondents with >$250K median ACV book nearly 25% of their contracts at 3 years or longer (down from 35% in the 2015 group).

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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

The median TTM revenue growth rate + adj. EBITDA margin for publicly traded SaaS companies was ~37%, implying that just under one half met or exceed “The Rule of 40%”

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

80% of venture capital investments take place in the enterprise

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

86% of SaaS businesses treat “New Customer Acquisition” as their highest growth priority, both in terms of executive support and funding available

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

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

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

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

More SaaS & Tech Growth Strategy Stats

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

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

Software and online services are in a period of dizzying growth

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

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

The boom in the industry is creating more jobs for techies. Data reveals there were 627,000 unfilled positions in tech in April 2017

The very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

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

Revenue Churn Rate = (RCR) (MRR at beginning of month – MRR at end of month) – MRR in upgrades during month / MRR at beginning of month