Recurring revenue is a core metric for SaaS companies. It drives valuation, funding, and success. Revenue retention is a major concern for product managers. They need to understand what is going on with the revenue streams from their existing customers. Logo retention, Gross Retention, and Net Dollar Retention are three critical metrics. For private companies in 2021, the median Gross Retention was between 88% and 90%. The median Net Dollar Retention was between 60% and 148%. For public SaaS companies the median Net Dollar Retention rate was 114%.
OpenView SaaS Financial & Operating Benchmarks 2021
OpenView Partners is a Boston-based expansion stage venture capital firm. They have a portfolio of SaaS investments that consists of over 60 companies. 24 have been acquired (Exact Target, Lessonly) and two have gone public (DataDog & Instructure). OpenView Partner is a huge proponent of the Product Led Growth (PLG) movement. They also regularly publish financial and operating benchmarks for SaaS companies, including product led growth companies. In November they published the 2021 version of the report. It includes 17 financial and operating metrics, many segmented by company revenue size.