Cloud application services are expected to grow at an average annual rate of 18.5% through 2025 in Market Research
Investment in marketing automation tools is expected to reach $25 billion by the year 2023 in Market Research
For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time in SaaS & Tech Growth Strategy
As SaaS companies scale their growth engines, a slightly-above-average churn rate becomes harder and harder to offset with net new revenue growth in SaaS & Tech Growth Strategy
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 SaaS & Tech Growth Strategy
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 in SaaS & Tech Growth Strategy
A 2017 SaaS Capital survey showed that young companies actually have higher retention rates than more mature SaaS businesses in SaaS & Tech Growth Strategy
Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs in SaaS & Tech Growth Strategy
As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn in B2B SaaS
In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20% in SaaS & Tech Growth Strategy
The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100% in SaaS & Tech Growth Strategy
Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month in SaaS & Tech Growth Strategy
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 in SaaS & Tech Growth Strategy
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 SaaS & Tech Growth Strategy
High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%. in SaaS & Tech Growth Strategy
High-growth companies offer a return to shareholders 5 times greater than medium-growth companies in SaaS & Tech Growth Strategy
SaaS companies in the $7.5MM-$15MM range are among the fastest growers in SaaS & Tech Growth Strategy
55% of SaaS companies rate Customer Retention as the key metric to measure in SaaS & Tech Growth Strategy
The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost in SaaS & Tech Growth Strategy
Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000 in SaaS & Tech Growth Strategy
It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue in SaaS & Tech Growth Strategy
At a 35% CAGR, it takes 10 years for a SaaS company to grow from $5M to $100M in ARR in SaaS & Tech Growth Strategy
It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR in SaaS & Tech Growth Strategy
The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year in SaaS & Tech Growth Strategy
Even if a software company is growing at 60% annually, its chances of becoming a multibillion-dollar giant are no better than 50/50 in SaaS & Tech Growth Strategy
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 in SaaS & Tech Growth Strategy
For SaaS companies valued at over $1billion, the median amount of financing raised is $206million in SaaS & Tech Growth Strategy
The fastest growing SaaS companies raise an average of $9.5M in Series A funding in SaaS & Tech Growth Strategy
When venture capitalists participate in seed rounds, the average round size is 3x larger in SaaS & Tech Growth Strategy
All types of investment have grown, year-on-year, with the biggest growth during the seed stage of financing in SaaS & Tech Growth Strategy
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 SaaS & Tech Growth Strategy
The largest SaaS companies (>$75million yearly revenue) attribute 2.5x as much new revenue to upselling than the smallest SaaS companies (<$1.25million): 28% versus 11% in SaaS & Tech Growth Strategy
The median SaaS business generates 16% of its new Annual Contract Value (ACV) from upselling to existing customers in SaaS & Tech Growth Strategy
Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015 in SaaS & Tech Growth Strategy
Internet Sales strategies have a significantly lower CAC of just $0.42 in SaaS & Tech Growth Strategy
To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14 in SaaS & Tech Growth Strategy
Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases in SaaS & Tech Growth Strategy
51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution in SaaS & Tech Growth Strategy
The average SaaS company spends just 6 hours determining their pricing strategy in SaaS & Tech Growth Strategy
A 1% increase in pricing strategy yields an average 11% increase in profit in SaaS & Tech Growth Strategy
36% of SaaS businesses managed to reduce their revenue churn over the last 12-months in SaaS & Tech Growth Strategy
The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10% in SaaS & Tech Growth Strategy
General Dynamics is a market leader in the aerospace and defense industry. In 2018, a total of 105,600 people were working at General Dynamics. in SaaS & Tech Growth Strategy
In 2018, the revenue of General Dynamics amounted to nearly 36.2 billion U.S. dollars. in SaaS & Tech Growth Strategy