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%”

SaaS + Software
Statistic in SaaS & Tech Growth Strategy

Statistic Info

~26% of respondents with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher – “The Rule of 40%”, a popular benchmark for top SaaS company performance.

The median results of those respondents meeting or exceeding “The Rule of 40%” showed that they tended to report lower churn and lower CAC ratios, be more enterprise-focused with larger contracts, rely more heavily on field sales and more often report a vertical focus.

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More SaaS + Software Stats

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

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

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

80% of venture capital investments take place in the enterprise

26% of SAAS companies with at least $15MM in GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher.

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

Growing faster has twice as much impact on share price as improving margins

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

More SaaS & Tech Growth Strategy Stats

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

Sony’s PlayStation brand had accumulated approximately 38.57 million fans on the social network

Customer Segmentation analysis will help point out which are your most profitable segments

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

Women in western countries use the internet 17 percent more than their male counterparts

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

After $10M in ARR, the median growth rate slows to just under 50%

Cloud-hosted applications have a 99% uptime

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

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