Understanding how your firm performs in relation to your competitors and industry is important.  While there are a lot of metrics and benchmarks for SaaS companies, most are for large companies that are also publicly traded.  Finding benchmarks about revenue, expenses, and valuation for private firms with less than $25 million in revenue is tough.  This post presents 20 benchmarks and metrics for private SaaS firms under $25 million in revenue. The data is from four research reports that cover over 500 SaaS firms’’ performance in 2020 and 2021. You can compare your company’s performance using an included Excel file.

Baseline Research

This analysis is based on four research reports.  You can download the actual reports below:

Benchmark/Metrics Index

20 different benchmarks/metrics that cover revenues, expenses, and valuation are presented:

Revenue Benchmarks

2020 Organic Revenue Growth for SaaS Firms Under $25 Million

2020 Organic Revenue Growth for SaaS Firms Under $25 Million

Key Bank Capital Markets 2021 SaaS Metrics report 

Average CAC Payback for SaaS Firms Under $25 Million

Average CAC Payback for SaaS Firms Under $25 Million

Bessemer Ventures Scaling to $100 Million

Gross & Net Revenue Retention for SaaS Firms Under $25 Million

Gross & Net Revenue Retention for SaaS Firms Under $25 Million

Bessemer Ventures Scaling to $100 Million

YoY Revenue Growth Rate Trends for SaaS Firms Under $25 Million

Bessemer Ventures Scaling to $100 Million

Median Revenue/Employee for SaaS Firms Under $25 Million

Median Revenue/Employee for SaaS Firms Under $25 Million

Key Bank Capital Markets 2021 SaaS Metrics report 

Upsell & Expansion Sales as % of ARR For SaaS Firms Under $25 Million

Upsell & Expansion Sales as % of ARR For SaaS Firms Under $25 Million

Key Bank Capital Markets 2021 SaaS Metrics report 

Median Revenue Growth & EV/Revenue Ratio Based on SaaS Category

Median Revenue Growth & EV/Revenue Ratio Based on SaaS Category

Note: This data covers public SaaS firms contained in the Software Equity Group SEG SaaS Index.

Software Equity October 2021 Update

2020 ARR Revenue Growth Based on SaaS Category

Note: This analysis covers all of the companies covered in the Key Bank Capital Markets 2021 SaaS Metrics report 

Key Bank Capital Markets 2021 SaaS Metrics report 

Organic ARR Revenue Growth for SaaS Firms Under $25 Million

Key Bank Capital Markets 2021 SaaS Metrics report 

Expense Benchmarks

Average Operating Expense Margins for SaaS Firms Under $25 Million

Bessemer Ventures Scaling to $100 Million

Bessemer Ventures Scaling to $100 Million

Gross Margins for SaaS Firms Under $25 Million

Bessemer Ventures Scaling to $100 Million

Average Operating Expense Margins for SaaS Firms Under $25 Million

Key Bank Capital Markets 2021 SaaS Metrics report 

Sales & Marketing Expense Per SaaS Category

Note: This analysis covers all of the companies covered in the Key Bank Capital Markets 2021 SaaS Metrics report 

Key Bank Capital Markets 2021 SaaS Metrics report 

Average SaaS Benchmarks for Under $25 Million Firm

Bessemer Ventures Scaling to $100 Million

Free Cash Flow Margins for SaaS Firms Under $25 Million

Free Cash Flow Margins for SaaS Firms Under $25 Million

Bessemer Ventures Scaling to $100 Million

Go To Market Type Distribution for SaaS Firms Under $25 Million

Key Bank Capital Markets 2021 SaaS Metrics report 

2020 Growth vs Burn Tradeoff for SaaS Firms Under $25 Million

Key Bank Capital Markets 2021 SaaS Metrics report 

Valuation Benchmarks

Overall SaaS Firm Enterprise Value Revenue Multiples 2021

Note: This data covers public SaaS firms contained in the Software Equity Group SEG SaaS Index.

Overall SaaS Firm Enterprise Value Revenue Multiples 2021

Software Equity October 2021 Update

Cloud Valuation Multiples by SaaS Category Type

Note: This data covers all of the portfolio companies  included in the Bessemer Ventures Scaling to $100 Million

Bessemer Ventures Scaling to $100 Million

Cloud Valuation Multiples for SaaS Firms Under $25 Million

Bessemer Ventures Scaling to $100 Million

EV/Revenue Discounts for SaaS Firms Under $25 Million

Software Equity 2021 Annual Report

EV Discounts for Private SaaS firms vs Public SaaS Firms

EV Discounts for Private SaaS firms vs Public SaaS Firms

SaaS Capital  Public-Private Valuation Gap Widens for SaaS Company Multiples

Assess Your Company’s Performance

You can assess your company’s performance against the benchmarks/metrics for SaaS firms under $25 million in revenue using the following spreadsheet. You can download a copy here.

Assess Your Company’s Performance

DevelopmentCorporate

Summary

Understanding how your firm performs in relation to your competitors and industry is important.  While there are a lot of metrics and benchmarks for SaaS companies, most are for large companies that are also publicly traded.  Finding benchmarks about revenue, expenses, and valuation for private firms with less than $25 million in revenue is tough.  This post presents 20 benchmarks and metrics for private SaaS firms under $25 million in revenue. The data is from four research reports that cover over 500 SaaS firms’’ performance in 2020 and 2021. You can compare your company’s performance using an included Excel file.


Also published on Medium.