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%”

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.

More SaaS + Software Stats

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

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business; which may have a dramatically negative effect on your company’s growth. Source: Mckinsey

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

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

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

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

SAAS companies that are focused mainly on enterprise sales have higher levels of professional services

More than two thirds of SAAS companies experienced annual churn rates of 5% or higher

More Growth Strategy Stats

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

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

Internet Sales strategies have a significantly lower CAC of just $0.42

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

Invention is 10% inspiration and 90% perspiration.

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)

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

It’s 9x cheaper to retain existing customers than acquire new customers: costing $0.13 to acquire any additional dollar of revenue

As of December 2018, there were total 105,000 employees in Lockheed Martin, as compared to 126,000 employees in 2015.