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

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

56% treat “Existing Customer Renewals” as high priority

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

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As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn

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

Companies that spend more on sales and marketing (as a % of revenue) generally grew at a faster rate than those that spent less

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

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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 average SaaS company spends just 6 hours determining their pricing strategy

At Facebook, 15 percent of tech roles are staffed by women

High-growth companies generate 60% fewer sales opportunities than low-growth companies

If you are charging $500 per month, you can afford to spend up to 12x that amount (i.e. $6,000) on acquiring a new customer

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

The very best SAAS business has a negative churn rate and will have a Dollar Retention Rate of greater than 100%

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

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

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