SaaS Historical Benchmarks
RESEARCH SERIES BY
Recognizing SaaS Benchmark Pioneers
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
SaaS Historical Benchmarks - Executive Summary
2010 2021 Change CAGR Heatmap
2010 to 2021 Benchmarks: An Industry Maturing
Net Revenue Retention 106% 109% 3% Gross Churn as % ACV 5% 14% 9% % Revenue From Expansion 19% 46% 27% New Logo CAC $0.93 $1.78
91% 6% 118% 7% 107% 7% 56% 4% 1% 0% 38% 3%
Expansion CAC $0.28 $0.61 Field Sales CAC $1.00 $2.07 Inside Sales CAC $0.90 $1.40
2022 + 2023 Metrics Will Show Further Weakness
Revenue Per Employee ($k) *
$142 $143
But...
Years To $5m ARR * Margins: Gross Margin
3.25
4.5
71% 73% 2% Sales + Marketing 32% 40% 8% R+D 23% 25% 2% G+A 14% 19% 5% EBITDA 1% -10% -11% Revenue Growth 45% 28% -17% Rule of 40 46% 18% -28%
34% Average Growth Rate Is A Material Offset To “Only” MSD CAGR Metric Declines
Source: Pacific Crest / Key Banc SaaS Surveys. *: Rev/FTE starts 2014, Years To $5m ARR starts 2009 Social Attribution: @CloudRatings + @SaaSletter
Net Revenue Retention (NRR)
125%
100%
75%
106% 106% 101% 103% 104% 102% 101% 102% 103% 102% 109%
50%
25%
0%
2010 2011
2012 2013 2014 2015 2016 2017 2018 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Logo Churn
25%
20%
15%
10%
5%
13% 7% 8% 8% 10% 10% 11% 21% 15% 13% 13%
0%
2010 2011
2012 2013 2014 2015 2016 2017 2018 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Gross Churn as % ACV
15%
10%
5%
8% 5% 5% 9% 6% 7% 8% 8% 13% 13% 14% 13% 14%
0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
% of Revenue From Expansion
50%
40%
30%
20%
10%
19% 14% 13% 14% 16% 15% 19% 34% 37% 36% 46%
0%
2010 2011
2012 2013 2014 2015 2016 2017 2018 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
New Logo vs Expansion CAC
Expansion CAC New CAC
$2
New: $1.78
$1.5
New: $0.93
$1
$0.5
Expansion: $0.28
Expansion: $0.61
$0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
New Logo vs Expansion CAC
Expansion CAC New CAC
$2
$1.78
$1.65
$1.60
$1.5
$1.34
$1.32
$1.18
$1.15
$1.13
$1.07
$0.93
$0.90 $0.92
$1
$0.69
$0.66
$0.66
$0.61
$0.61
$0.57
$0.5
$0.28
$0.28
$0.27
$0.18
$0.18
$0.17
$0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Field Sales vs Inside Sales CAC
Field Sales CAC Inside Sales CAC
$2.5
Field Sales: $2.07
$2
$1.5
Field Sales: $1.00
$1
Inside Sales: $1.40
$0.5
Inside Sales: $0.90
$0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Field Sales vs Inside Sales CAC
Field Sales CAC Inside Sales CAC
$2.5
$2.07
$2
$1.72
$1.52
$1.50
$1.5
$1.40
$1.28
$1.25
$1.21
$1.14
$1.14 $1.11
$1.11
$1.08
$1.02
$1.00
$1
$0.96
$0.89
$0.90 $0.88 $0.83
$0.90
$0.86
$0.85
$0.65
$0.5
$0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
SDR Metrics: Effort Up, Results Down
# Attempts In A Cadence Quality Conversations Per Day
15
Attempts: 11.3
QC's: 8
10
5
Attempts: 7.3
QC's: 3.6
0
2014
2016
2018
2020
2022
Source: Bridge Group "2023 SDR Metrics" Report Social Attribution: @CloudRatings + @SaaSletter
Revenue Per Employee
$150
$100
$142
$130
$137
$131
$139
$138
$145
$143
$50
$0
2014 2015
2016
2017
2018 2019
2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
P&L Summary
Gross Margin Sales + Marketing R+D G+A EBITDA
80%
60%
40%
20%
0%
-20%
-40%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
10% 7.5% 5% 2.5% 0% -2.5% -5% -7.5% -10% EBITDA Margin Bridge 10% +2%
-2%
-1%
-5%
-8%
G&A 2021 EBITDA Margin
Gross Margin
R+D
Sales + Marketing
2010 EBITDA Margin
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Rule of 40 = Growth + Margins
Rule of 40
Revenue Growth
EBITDA Margins
50% 40% 30% 20% 10% 0% -10% -20% -30%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Rule of 40 Bridge
50%
46%
40%
30%
20%
18%
10%
0%
-- 25% -11%
-10%
-17%%
-20%
2010 Ro40
Revenue Growth
EBITDA
2021 Ro40
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Years To $5 Million ARR
5
4
3
2
3.25 3
4
4
4
3
4 4.2 4.6 4.4 4.5
1
0
2009 2011
2012 2013 2014 2015 2016 2017 2018 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Years To Each ARR Threshold
$1m ARR $5m ARR $10m ARR $15m ARR $25m ARR $40m ARR $50m ARR $100m ARR
10
7.5
5
2.5
0
2009 2011
2012 2013 2014 2015 2016 2017 2018 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Median SaaS vs BVP $100m ARR Centaurs
= Median SaaS (via Key Banc Surveys)
$50m: 7 - 9 Yr
$40m: 7 - 9 Yr
$25m: 5.5 - 7 Yr
$10m: 4 - 5.6 Yr
$5m: 3 - 4.5 Yr
Source: Pacific Crest / Key Banc SaaS Surveys / Bessemer Venture Partners Social Attribution: @CloudRatings + @SaaSletter
SaaS Historical Benchmarks - Appendix
RESEARCH SERIES BY
New Logo CAC
$2
$1.5
$1
$0.5
$0.73 $0.93 $0.90 $0.92 $1.07 $1.18 $1.13 $1.15 $1.32 $1.34 $1.60 $1.65 $1.78
$0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Expansion CAC
$0.75
$0.5
$0.25
$0.28 $0.18 $0.17 $0.18 $0.28 $0.27 $0.57 $0.66 $0.61 $0.69 $0.66 $0.61
$0
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Cost Summary
COGS Sales + Marketing R+D G+A
125%
Unprofitable Post 2015
100%
75%
50%
25%
0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Rule of 40 = Growth + Margins
Rule of 40 Revenue Growth EBITDA Margins
50% 40% 30% 20% 10% 0% -10% -20% -30%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
Rule of 40
50%
40%
30%
20%
10%
34% 46% 43% 36% 29% 32% 20% 19% 14% 16% 11% 26% 18%
0%
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
Source: Pacific Crest / Key Banc SaaS Surveys Social Attribution: @CloudRatings + @SaaSletter
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