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As with unit churn, companies with longer contracts (2+ years) tend to report lower annual dollar churn. Companies with shorter contracts (under 2 years) saw increased dollar churn compared to last year; contracts 2 years or longer were relatively consistent with prior survey results.

By definition, non-renewal rates are higher than gross dollar churn rates. However, it is interesting to see that the non-renewal rates are also higher for shorter duration contracts.

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More SaaS + Software Stats

SaaS IPOs have more than doubled over the last 12 years

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

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

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

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

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

Internet Sales strategies have a significantly lower CAC of just $0.42

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

SaaS businesses face significant losses in the early years (and often an associated cash flow problem)

Increases in revenue growth rates drive twice as much market-capitalisation gain as margin improvements for companies with less than $4 billion in revenues

More Growth Strategy Stats

The median monthly revenue churn for large SaaS companies is 0.75%, translating into an annual revenue churn rate of 10%

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

Publicly-traded SaaS companies have an average Revenue Per Employee of $200,000

Analyzed 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

The fastest growing SaaS companies raise an average of $9.5M in Series A funding

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

In 2018, the U.S. imported aerospace products worth about 53.98 billion U.S. dollars.

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”

In 2018, the global tech spending is forecast to amount to 3,212 billion U.S. dollars.

The median average contract length is 1.3 years and the average billing term is seven months in advance in 2016. Comparable to 2015, with average contract length shortening from 1.5 to 1.3 years and average billing period increasing by one month from 2015 to 7 months