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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.

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More SaaS + Software Stats

The fastest growing SAAS companies averaged $250k in MRR and were only losing around 3.2% of that revenue each month to churn

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

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

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

In 2017, IBM generated 37.8 billion U.S. dollars in global IT services revenue, making it the largest IT services company in the world in terms of net sales

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

Moving from $1.5 million with an eye towards $10 million in ARR is a tough a task and will take an excellent VP of sales to get you there

The average company gets 16% of new ACV sales from up-sells and expansions, though companies with revenue between $10MM-$40MM are relying more heavily on up-sell and expansions

More Growth Strategy Stats

Our experiences with SaaS startups indicate that they usually start with a couple of lead generation programs such as Pay Per Click Google Ad-words, radio ads, etc

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

Japanese company Hitachi accounted for three percent of the world’s market for diagnostic imaging in 2017.

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

The statistic shows the worldwide IT spending on enterprise software from 2009 to 2020.

The very best SaaS businesses have a negative revenue churn rate and will have a Revenue Retention Rate of greater than 100%

Growing faster has twice as much impact on share price as improving margins

It’s 4x cheaper to upsell existing customers than acquire new customers: costing just $0.28 to acquire an additional dollar of revenue

A 1% increase in pricing strategy yields an average 11% increase in profit

In 2017, the world invested around 3.4 billion U.S. dollars in small hydropower technologies, down from 3.9 billion U.S. dollars in 2016.