Operational and Financial Benchmarks for SaaS Companies

Grazed from GeoNexus.  Author: David Crankshaw.

If you are building a SaaS startup, you know exactly how well you are doing on your key metrics.  But then you wonder (and get asked), how well am I doing compared to other SaaS companies? And more importantly, if I knew the metrics of other SaaS companies, would I adjust my strategy?

Each year Pacific Crest, an investment banking firm that specializes in SaaS firms, conducts a survey of key operational and financial metrics.  The survey participants included 155 companies from around the world (but mostly from the U.S.). About a third (58) of the companies were small with under $2M in revenue.  David Skok, at his For Entrepreneurs blog, published the results of the 2013 Pacific Crest SaaS Survey. It’s a long post with fascinating detail. Here are eight graphs from the survey. See Skok’s article for the rest…

Although about 25% of the companies use the Freemium model, it produces few leads that convert into revenue. Companies use the Try-Before-You-Buy model more successfully. About two thirds of them use this model and it produces more leads that produce revenue…

Read more from the source @ http://www.geonexus.com/measurement/operational-and-financial-benchmarks-for-saas-companies/