Statistic Info

The median result is notably higher than compared to previous surveys, where the $1.07 and $0.92 were reported in the 2014 and 2013, respectively. Respondents (excluding the smallest companies) spent a median of $1.18 to acquire each dollar of new ACV from a new customer. The result drops to $1.06 if we include companies with <$2.5MM in revenues.

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More SaaS + Software Stats

80% of venture capital investments take place in the enterprise

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

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

Software and online services are in a period of dizzying growth

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

The median annual unit churn for SAAS companies was 10% in 2016

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

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

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers

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

More Growth Strategy Stats

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

55% of SaaS companies rate Customer Retention as the key metric to measure

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%”

In 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

Analyzed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

How Often Should The Pricing Committee Be Meeting And Making Changes?

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