Statistic Info

To study churn, we need to look at a particular group of customers that signed up in a particular time period. We refer to these groups as cohorts. So you might have a Jan 2014 cohort which is comprised of all the customers that signed up in Jan 2014. We will then want to track how many customers we retain, and how the revenue for each cohort evolves over time. Here is a graph that shows what happens to the number of customers in a particular cohort over several years with three different monthly Customer Churn Rates.

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More SaaS + Software Stats

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

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

Is your SaaS business viable?

26% of SAAS companies with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher

Unlike many other industries, if a software company grows at only 20%, it has a 92% chance of ceasing to exist within a few years

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

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

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

A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses

If a software company grows at 20% annually, it has a 92% chance of ceasing to exist within a few years

More Growth Strategy Stats

Analysed by contract value, field sales are primarily evident for companies with median deals over $25K. Inside sales strategies are most popular for companies with $1K-$25K median deal sizes

Because of the losses in the early days, which get bigger the more successful the company is at acquiring customers, it is much harder for management and investors to figure out whether a SaaS business is financially viable.

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

Achieving a SaaS Quick Ratio of 4 is a good benchmark for young, high-growth companies but the equation changes as those companies reach scale

The median annual contract value (ACV) was $25K, $21K, $21K, $20K in 2016, 2015, 2014 and 2013

In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars.

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

All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing

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

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