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You can achieve Negative Churn, which means you are adding MRR at a faster pace than you are losing it.

InsightSquared

More SaaS + Software Stats

SAAS companies invest between 80% and 120% of their revenue in sales and marketing in the first 5 years of their existence

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

The median Customer Acquisition Cost (CAC) for upsells is just $0.28 per $1, less than a quarter of the $1.18 spent to acquire $1 of revenue from a new customer

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

Is your SaaS business viable?

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%

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

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

More Growth Strategy Stats

Best-in-class SaaS companies achieve 5-7% annual revenue churn – equivalent to a loss of $1 out of every $200 each month

How To Make Pricing A Constant Process In Your Organization

At Facebook, 15 percent of tech roles are staffed by women

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

High-growth companies are 8X more likely to reach $1 billion in revenues than those growing less than 20%.

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

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

In contrast to these, the median annual churn rate for smaller, private SaaS companies with less than $10M in revenue is 20%

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts

Only 8% of large companies use internet sales strategies. The proportion of companies relying on internet sales increases as company size decreases