Quote Info

Professional services play a minor role for most companies, with the median company booking P.S. revenues on new deals equivalent to 16% of first year subscription contract value. Median P.S. margins are approximately 22%. These results are consistent with last year’s results.

For Entrepreneurs.com

More SaaS + Software Stats

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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

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

SaaS companies in the $7.5MM-$15MM range are among the fastest growers

Improve Your Pricing Schedule And Turn More Profit

The best SAAS businesses have a LTV to CAC ratio that is higher than 3, sometimes as high as 7 or 8

While field sales remains the most popular way to sell for companies >$2.5MM revenue, companies with <$2.5MM revenue tended to use inside sales as their primary mode of distribution

The median annual unit churn for SAAS companies was 10% in 2016

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

More Growth Strategy Stats

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

Is your SaaS business viable?

The median cost for a SaaS company to acquire a dollar of new customer revenue is $1.18

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

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 2017, Foxconn Technology Group achieved revenue of 158.15 billion U.S. dollars.

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

Account Churn Rate (ACR) = customers at beginning of month – customers at the end of month / customers at beginning of month

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

Smaller SAAS companies reported more frequent use of third-party providers as their primary application delivery method, while the largest companies were more likely to use self-managed servers