Statistic Info

Median annual gross dollar churn (without the benefit of upsells) is ~8%. This result is comparable to past survey results (7% in 2015, 6% in 2014, 8% in 2013).

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.

For Entrepreneurs.com

More SaaS + Software 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

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

It’s common for startups to grow rapidly, doubling or tripling in size year over year, until they hit $5M in ARR

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

Non-renewal rates are higher than gross dollar churn rates and higher for shorter duration contracts. Source: ForEntrepreneurs

The median startup spends 92% of first year revenue on customer acquisition, taking 11-months to payback their Customer Acquisition Cost

After $10M in ARR, the median growth rate slows to just under 50%

54% treat upselling and add-on sales as high priority

80% of venture capital investments take place in the enterprise

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

More Growth Strategy Stats

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

Three uses for the SaaS Guidelines

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

Companies with longer contracts (2+ years) reported the lowest annual unit churn

High-growth companies generate 60% fewer sales opportunities than low-growth companies

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

In 2017, Foxconn Technology Group achieved a net income of 135.37 billion New Taiwanese dollars, the equivalent to approximately 4.55 billion U.S. dollars.

Growth rate accelerates in the expansion stage ($2.5M – $10M ARR)

In 2020, China is expected to generate 55 billion U.S. dollars in the global medical technology market.

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