Expansion-stage SaaS companies have an overarching goal to grow very fast and achieve sustainable profitability. Understanding the operating metrics behind other expansion-stage SaaS companies can help them form an optimal economic model.
With that in mind, OpenView Venture Partners recently surveyed more than 160 senior executives and consultants at SaaS companies to create a report that is specifically focused on some of the growth and profitability metrics that are most relevant to SaaS companies at the expansion stage. Below are some of the report’s key findings.
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Facts and Stats To Tweet:
- SaaS Operating Metrics Uncovered (Infographic): Many SaaS companies with over $5 million in MRR are still growing at 50%+. »tweet«
- Early stage SaaS companies typically have to spend up to 39% of their revenue on sales & marketing. »tweet«
- In order to grow, expansion stage SaaS companies typically have to spend at least 20% of their revenue on sales & marketing. »tweet«
- Companies earning btwn $3.5-$5 million of MRR appear to hit a major inflection point in terms of workforce efficiency. »tweet«
Sources and Resources
- Expansion Stage SaaS Metrics
- Measuring Growth Businesses with Recurring Revenue
- SaaS Metrics 2.0 – A Guide to Measuring and Improving what Matters
- SaaS Customer Lifetime Value Drives SaaS Company Value
- 2012 Software and SaaS Benchmarking Industry Report
- Don’t Forget to Check Out the Open View Labs Blog