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Survey results indicate that companies in the $7.5MM-$15MM range are among the fastest growers. The median growth in this range is much greater than the median of companies half their size. Interestingly, there was a similar bump-up last year, but for companies between $5MM-$7.5MM.

There doesn’t appear to be any relationship between median contract size and growth other than a bump-up for the <$1K and $15K-$25K groups (though this could be skewed by sparse data in those groups). Last year, the bump-up occurred for companies in the $100K-$250K AVC range.

For Entrepreneurs.com

More SaaS + Software Stats

When determining Sales Capacity, “it’s worth noting that some percentage of new sales hires won’t meet expectations, so that should be taken into consideration when setting hiring goals. Typically we have seen failure rates around 25-30% for field sales reps, but this varies by company. The failure rate is lower for inside sales reps. can be counted as half of a productive rep”

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

If the numerator of your quick ratio is growing that means your revenue is growing. It’s important to keep increasing revenue to counter any MRR (Monthly Recurring Revenue) that is lost to churn

The metrics that matter for each sales funnel, vary from one company to the next depending on the steps involved in the funnel

Customer Acquisition Cost (CAC) = sum of all sales & marketing expenses/ number of new customers added

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

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

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

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

Less than 20% of new revenue came from existing customers in the form of up-sell and expansion sales

More Growth Strategy Stats

Median annual gross dollar churn was 8%, 7%, 6% and 8% in 2016, 2015, 2014 and 2013

A 1% increase in pricing strategy yields an average 11% increase in profit

When venture capitalists participate in seed rounds, the average round size is 3x larger

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

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

The venture-backed companies that were acquired most often had a 7 percent share of female execs, as opposed to 3 percent at unsuccessful (unacquired) firms

36% of SaaS businesses managed to reduce their revenue churn over the last 12-months

Since churn is so important, wouldn’t it be useful if we could predict in advance which customers were most likely to churn?

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

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