Statistic Info

SaaS company growth rates are strongly in?uenced by customer retention and upsell For the third year in a row, the survey indicates that the fastest growing SaaS companies have a signi?cantly better record on churn and upsell, underscoring the critical role of managing revenue from existing customers in the SaaS business model.

Totango

More SaaS + Software Stats

To generate a single dollar of new customer revenue, Field Sales strategies have an average Customer Acquisition Cost (CAC) of $1.14

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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 very best SAAS companies keep monthly revenue churn at around 0.58%, that’s only about 7% revenue churn a year

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

Between the SMB and Enterprise customer types, the top-quartile performers not only have net-revenue churn that is 14% to 23% percentage less than the average performers but also have net-revenue churn that is negative in an absolute sense

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

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

The fastest growing SaaS companies scale their organizations rapidly, growing their teams by an average of 56% each year

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.

More Growth Strategy Stats

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

Three uses for the SaaS Guidelines

SaaS IPOs have more than doubled over the last 12 years

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

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

Revenue Renewal Rate= (MRR up for the renewal at beginning of month- MRR not renewed at the end of month)/ MRR up for renewal at beginning of month)

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

51% of large (revenue >$2.5million) SaaS companies use field sales as their primary method of distribution

SAAS companies need to track the number of visitors, trials and closed deals; And also track the conversion rates, with the goal of improving those over time