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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In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

Gross dollar churn among companies with an internet go-to-market strategy saw a meaningful increase, up from 8% in 2015

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

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 top 50% of the fastest growing SaaS businesses generate much higher upsells than their competitors. The larger the business, the greater the impact of upselling

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

More than 1/2 of SAAS companies increased their spending on customer retention last year

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

54% treat upselling and add-on sales as high priority

More Growth Strategy Stats

In 2018, the market size of information technology outsourcing amounted to 62 billion U.S. dollars.

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

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

Getting paid in advance is really smart idea if you can do it without impacting bookings, as it can provide the cash flow that you need to cover your cash problem

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

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

Invention is 10% inspiration and 90% perspiration.

In 2019, spending on IT services is expected to amount to 1,016 billion U.S. dollars worldwide

47% of millennials want to work at diverse companies, according to a recent study.

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