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

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

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

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

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

At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR

Negative Churn and Expansion Revenue

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%)

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

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

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

More Growth Strategy Stats

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

in 2016, women-led companies received $1.46 billion in investments from venture capitalists. Male-led companies, on the other hand, received $58.2 billion

In 2017, the global adoption rate for biotech soybean amounted to 77 percent.

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

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

The average company booking professional services revenue on new deals is equivalent to 16% of the first year subscription value. Professional services margins are approximately 22%

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

56% treat “Existing Customer Renewals” as high priority

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

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