Statistic Info

~26% of respondents with at least $15MM in 2015 GAAP revenue had a revenue growth rate + EBITDA margin of 40% or higher – “The Rule of 40%”, a popular benchmark for top SaaS company performance.

The median results of those respondents meeting or exceeding “The Rule of 40%” showed that they tended to report lower churn and lower CAC ratios, be more enterprise-focused with larger contracts, rely more heavily on field sales and more often report a vertical focus.

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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

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

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

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

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

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

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

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55% of SaaS companies rate Customer Retention as the key metric to measure

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For a SaaS business of almost any scale, the valuation impact of better retention is in the tens of millions over time

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

Internet sales strategies are the only sales method to see a decline in CAC, dropping from $0.54 to $0.42 between 2014 and 2015

To establish a revenue or lead-commitment based on your funnel metrics and revenue-growth goals, work backward from the gross revenue amount that marketing is responsible for generating (generally around 40%)

If your Net Revenue Churn is high (above 2% per month) it is an indicator that there is something wrong in your business

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

SaaS IPOs have more than doubled over the last 12 years

Improve Your Pricing Schedule And Turn More Profit

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

SaaS, and other recurring revenue businesses are different because the revenue for the service comes over an extended period of time (the customer lifetime)