Pacific Crest – SaaS Survey, 2014

Published
2014
Base
200 companies
Company Type
Private, Public, B2B, B2C, SAAS
Revenue
$0-100 Million
Geography
USA, Europe, APAC,

Description

David Skok, a five time serial entrepreneur turned VC at Matrix, and David Spitz (@dspitz) from Pacific Crest, an investment banking firm with a specific focus on SaaS, work together on a yearly basis. In 2014t, they surveyed 200 SaaS companies on a variety of topics such as growth rates, CAC (cost to acquire a customer), gross margins, churn rates, etc. The goal of the survey is to provide useful operational and financial benchmarking data.

In Lean_Marks we are referencing a few samples of this surve

The survey covers broad diversity of SaaS companies (primarily U.S.) participated with

  • $4MM median revenues, (50 companies with >$25MM and 80 with <$1MM
  • 25-250+ employees ( 50 median)
  • 10-2,000+ customers ( 78 median)
  • $100s to $MMs median annual contract value ( $20K median)
  • Good mix of sales channels including field sales, inside sales and mixed distribution models

The report's first part 2014 Pacific Crest SaaS Survey – Part 1 covers metrics on

  • Growth (median growth rate by company size, sales model, target customers)
  • Go-to-market Approach (primary sales model, primary sales model by median initial contract size)
  • Customer-acquisition-cost (CAC) (CAC for for $1 of new ACV, CAC and share of new ACV on new customers vs. upsells vs. renewals, CAC by primary sales model)
  • Contracting & Pricing (median annual contract size (ACV) per customer, share of new ACV on new customers vs. existing customers, new ACV from Freemiums/Free trials), average contract length, average billing period, contract length by contract size, primary pricing metric)
  • Professional Services Impact on Go-to-Market (in % of 1st-year ACV by target customer), subscription gross margins)
  • Sales Commissions (by median contract size, for renewals, upsells and multi-year deals)

The report's second part 2014 Pacific Crest SaaS Survey – Part 2 covers metrics on

  • Cost Structure (gross margin, OPEX (S&M, R&D, G&A, EBITDA, FCF), growth rate, median cost structure by size and Sales & Marketing spend vs. projected growth rate)
  • Churn and retention (annual gross dollar churn, annual customer churn, churn by contract length, contract size, primary distribution mode, annual net dollar retention from existing customers)
  • Capital Requirements (capital raised, analysis of companies by capital raised, capital efficiency expectations – median levels for the group, actual/expected time and investment required to reach, ACV at which you expect to have FCF+)

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