《Paddle&Pavilion：2024年B2B軟件即服務（SaaS）績效指標基準報告（英文版）（43頁）.pdf》由會員分享，可在線閱讀，更多相關《Paddle&Pavilion：2024年B2B軟件即服務（SaaS）績效指標基準報告（英文版）（43頁）.pdf（43頁珍藏版）》請在三個皮匠報告上搜索。

1、benchmark2024 B2B SaaS Benchmark ReportPERFORMANCE METRICS*Benchmarks from CY-2314ExecutiveSummary16CustomerExpansionBenchmarks13CustomerRetentionBenchmarks27CapitalEfficiencyBenchmarks5CustomerAcquisitionBenchmarks20OperationalEfficiencyBenchmarks36ParticipantProfile42InteractiveBenchmarksOverviewT

2、able of ContentsWhat you can find in this reportbenchmark2Our ApproachCurate a detailed and extensive collection of B2BSaaS Performance Metrics and calculate theirassociated Benchmarks ensuring statisticalsignificance.This involves capturing a largepopulation and array of financial metrics and keype

3、rformance indicators specific to private B2BSaaS companies.The objective is to establish a continuously evolvingbenchmarking index that reflects the nuanced andtrending landscape of B2B SaaS,providing insightsfor evaluation,enabling comparison of internalmetrics to“like company”benchmarks,andenablin

4、g strategic decision-making leading to moreefficient revenue growth and increased revenuegrowth performance.benchmark32023 was a year that saw B2B SaaS companies focus on efficient revenue growth the catch phrase of the year.This yearsSaaS Performance Metrics Benchmarking research uncovered that“gro

5、wth at any cost”has been replaced with“lower growthat reduced efficiency”.The above statement is based upon the insights uncovered from the performance metrics data provided by 1,000 B2B SaaScompanies that participated in this years benchmarking research.The 2024 SaaS Performance Metrics Benchmark r

6、eport highlights several examples of metrics that exhibited decreasingrevenue growth efficiency trends in 2023 as measured by customer acquisition and expansion efficiency metrics includingBlended CAC Ratio,New CAC Ratio,CAC Payback Period,and Net Revenue Retention.Sales and Marketing expenses werer

7、educed across the board from the 2022 benchmarks report and 2023 growth rates were lower across the board.The positive news is the SaaS industry is comprised of founders and CEOs that are optimists.Planned growth rates,with thenotable exception of companies in the less than$1M ARR segment,are planne

8、d to be higher in 2024 than actual growth ratesin 2023.Every benchmark in this report can be filtered by company profile attribute including:1)Company Size;2)Average AnnualContract Value;3)Go-to-Market Motion;4)Pricing Model;5)Target Customer Segment;6)Product Category and;7)Region ofthe World using

9、 the below link.benchmarkExecutive Summarybenchmarkit.ai/2024benchmarks4benchmarkCustomerBenchmarks ACQUISITION5Despite the focus on“Growth Efficiency”we saw Sales andMarketing expenses incurred to acquire$1 of ARR from new namecustomers remain fairly level at a median of$1.76.This was afterexcludin

10、g statistical outliers that if left in the benchmark calculationwould have increased the New Name CAC Ratio to$1.85 atmedian.The top quartile increased slightly to$2.03 in 2023,up from$2.00in 2022 and$1.84 in 2021.Though not shown within the benchmarks due to the models weuse to identify and remove

11、statistical outliers,we saw a materialincrease in companies investing$2.50 or more to acquire$1 ARRfrom new customers,which was a concerning data point.Companies will need to evolve their Go-to-Market strategies andtactics to grow revenue more efficiently in 2024 and beyond,Werecommend targeting a N

12、ew CAC Ratio goal of$1.50 or lower forcompanies with an ACV greater than$10K.New Customer CAC RatioBy Fiscal YearFindings and InsightsbenchmarkBy Fiscal Year6New Customer CAC Ratio typically increases as the annualcontract value(ACV)increases which is highlighted in thischart.It is interesting to no

13、te that ACVs between$5K-$10K,$10K-$25K and$25K-$50K all display similar New CACRatios,while New CAC Ratio increases dramaticallybeginning at$50K ACV.Larger ACV solutions continue to exhibit higher costs toacquire a customer.These higher costs associated highervalue ARR solutions should be analyzed i

14、n context of GRR,NRR,Customer Lifetime Value to CAC Ratio and GrowthRate to fully understand the impact on longer term revenuelevels,cash generation capacity and enterprise valuepotential.New Customer CAC RatioBy ACVFindings and InsightsbenchmarkBy Annual Contract Value7benchmarkRevenue growth effic

15、iency was an elusive goal in 2023 as measuredby not only New CAC Ratio,but also the Blended CAC Ratio whichmeasures the how much Sales and Marketing expenses were incurredto acquire$1 New ARR from the combination of New NameCustomers and Existing Customer Expansion.Notice the dramatic increase in th

16、e median Blended CAC Ratio from$1.32 in 2022 to$1.61 in 2023.This$.29 increase in 2023 representsa 22%increase over 2022 by no means representing improvedrevenue growth efficiency.Later in this report,we also highlight the cost to generate$1 ofexpansion ARR from existing customers also increased and

17、 is amaterial factor in the increased Blended CAC Ratio.Allocating additional resources to existing customer expansionbecause“its easier and cheaper”without measuring andunderstanding the cost of growing expansion ARR is a key factor inthis large increase in an era of revenue growth efficiency.Blend

18、ed CAC RatioBy Fiscal YearFindings and InsightsBy Fiscal Year8benchmarkBlended CAC Ratio mirrors the similar increase in the CACPayback Period as companies scale.This years benchmarks highlight the challenge of growing inearlier stage companies in 2023($100K ACV typically have the highest NRR rates.

19、Net Revenue Retention RateBy Fiscal YearFindings and InsightsBy Fiscal YearBy Average Contract Value17benchmarkThe Expansion CAC Ratio measures how much Sales and Marketingexpense,including Customer Success is incurred to expand existingcustomer ARR by$1.It is widely assumed that expansion ARR is mo

20、re cost effective to generatethan new logo ARR,even though less than 20%of companies actuallymeasure Expansion CAC Ratio to support this belief.We did not publish the Expansion CAC Ratio in 2022 due to the number ofcompanies that calculated this metric.However,for the companies that didreport the be

21、nchmark it was$.69 at median across the entire population.In 2023,the majority of SaaS companies re-allocated resources from newcustomer pursuits to existing customer retention and expansion.This is afactor in the 2023 Expansion CAC Ratio being$1.00 at median.This new benchmark represents a 45%year

22、over year increase in the costto expand one dollar of ARR with an existing customer.Efficient revenuegrowth from existing companies also requires new innovative expansionstrategies and tactics.Expansion Customer CAC RatioBy Total PopulationFindings and InsightsBy Total Population18benchmarkTradition

23、al wisdom says existing customer expansion ARRshould be at a median of 30%of total new ARR.This heldtrue for several years,but in 2022 it increased to 33%andin 2023 has increased to 35%at median.Expansion ARR as a percentage of total new ARR shouldbe viewed in context of company size for more accura

24、tecomparisons.As companies scale,they often develop enhanced up-selland cross-sell motions including introducing new productsor pricing packages developed to expand existing customerARR and increase the Average Revenue Per Account(ARPA).The bottom chart highlights that companies approaching$50M ARR

25、and above are close to having 50%of theirgrowth ARR generated by existing customer expansion.Expansion ARR to Growth ARR%Findings and InsightsBy Fiscal YearBy Annual Revenue19benchmarkOperationalBenchmarks EFFICIENCY20benchmarkGrowth rates in 2023 reflect the reduction in growthrates that first appe

26、ared beginning in the second halfof 2022.Company size,as measured by revenue or ARR ishighly correlated to growth rates.The$50M-$100M and$100M segments experienced thelowest median growth rates in 2023 at 12%.Theseprivate company benchmarks are similar to the 2023median public company growth rates.V

27、isit our interactive benchmarks to analyze howother company profile attributes such as Go-to-Market motion,pricing models and region of theworld are correlated to the 2023 growth rates.Company Growth RateBy Fiscal YearFindings and InsightsBy Fiscal YearBy Annual Revenue21benchmarkMedian growth rate

28、across the population was 27%in2023 with the 75th percentile starting at 60%.The same group of companies from this yearsbenchmarking population have a planned growth rate of35%at median in 2024,with the top quartile beginning at66%Year over Year growth.Though an 8%increase in growth may not seem dra

29、matic on a holistic basis that is a 30%increase in growth ratesin a buyer environment that has not exhibited a return tothat level of growth.Companies will be well served to ensure their customeracquisition and customer expansion unit economics are in aposition that“WHEN”buyer momentum increases the

30、y canquickly accelerate Sales and Marketing investment whenbuyer behavior begins to align with the vendor optimismexhibited by the 2024 planned growth rates.2023 Growth Rate vs 2024 Growth Rate PlanBy Total PopulationFindings and Insights22benchmarkPlanned Growth Rates for 2024 highlight the pervasi

31、ve,optimistic culture across the B2B SaaS industry.With the notable exception of companies under$1M ARR,every segment plans for higher growth in 2024 than theyexperienced in 2023.The most notable increase in growth expectations is in the$1M-$5M ARR segment who experienced 32%growth atmedian in 2023

32、and are planning for a 50%growth rate in2024.Similarly,companies in the$50M-$100M ARR range areplanning for 21%Year over Year growth,an increase of 9%from their actual 12%growth rate in 2023.Lastly,companies at scale,as defined by greater than$100MARR in this research are planning for 29%growth in 2

33、024,astaggering 17%increase in growth versus their 12%actualgrowth rate in 2023.2023 Growth Rate vs 2024 Growth Rate PlanBy ARRFindings and Insights23The Rule of 40 measures the combination of growth rate and operatingprofitability.The most commonly used profitability metric used incalculating the R

34、ule of 40 is free cash flow margin.Some companies useEBITDA instead of FCF margin as the profitability factor.The Rule of 40 is an investor metric used to determine if a SaaS companyis growing profitably though often high growth can make up for lowerprofitability but not no profitability as a compan

35、y scales.There is a debate on the right combination of growth and profitability forcompanies as they scale over$50M.Though there is no perfectcombination,though Meritech Capital has conducted a two-factorregression and discovered that public companies with a growth rate ofgreater than 30%and a Free

36、Cash Flow Margin of 10%-20%have thelargest enterprise value to revenue multiples.Bessemer Venture Partners recently introduced the Rule of X whichhighlights current growth is 2.3x more correlated to enterprise value torevenue multiples than profitability.Rule of 40By Total PopulationFindings and Ins

37、ightsbenchmarkBy Total Population24Across the population participating in this years benchmarkingresearch,it was interesting to note that Product-Led Growthcompanies exhibited a higher“Rule of 40”at 34 versus Sales-LedGrowth companies with a“Rule of 40”at 20.On a stand-alone basis this could suggest

38、 Product-Led Growthcompanies perform better as measured by the Rule of 40 metric.However,no single metric should be viewed or used in isolation.Each metrics benchmark be evaluated in context of other companyprofile attributers including revenue size and Customer AcquisitionCost efficiency metrics in

39、cluding CAC Payback Period,CAC Ratioand Net Revenue Retention.Mathematical purists will highlight that the Rule of 40,which addstwo percentages together should be shown as a whole numberversus a percentage.Rule of 40By GTM Motion and Pricing ModelFindings and InsightsbenchmarkBy GTM MotionBy Pricing

40、 Model25benchmarkGross Margin is the measurement that shows the percentage ofrevenue that remains after subtracting the Cost of Goods Sold(COGS).Gross Margin,especially on subscription revenue hasbeen one of the most stable SaaS metrics over time.Gross Margin on software subscriptions was 79%at medi

41、an in2023,which is the same as 2022.The entry level to the topquartile increased to 85%in 2023 as companies exploitedopportunities to reduce Cost of Goods Sold including moreprogrammatic cloud cost management and automatedcustomer service initiatives.Total Gross Margin includes the impact of Profess

42、ional Serviceswhich often has gross margins in the 20%-35%range,andfor some companies can be closer to 0%if they view servicesas a mechanism to accelerate time to revenue,increasecustomer satisfaction and reduce customer churn.Gross MarginBy Fiscal YearFindings and InsightsBy Fiscal YearBy Fiscal Ye

43、ar26benchmarkCapitalBenchmarks EFFICIENCY27benchmarkSales and Marketing expenses measured as a percentage ofrevenue is a long-standing measurement to determine howmuch S&M expense was allocated compared to total revenue.Though not as instructive as CAC efficiency metrics tounderstand the unit econom

44、ics of acquiring,retaining andgrowing customers,it is a useful metric to benchmark acompany against similar,like companies.After seeing a decrease in Sales and Marketing expenses in2022 to 34%of revenue at median,it remained fairly levelacross the population 2023.It is important to note the ranges b

45、etween the 25th percentileand 75th percentile compressed in 2023.The first quartile nowbegins at 47%versus 56%in 2022 and the top quartile nowbegins at 21%.A counter intuitive datapoint is that the percentage ofinvestment in Sales and Marketing increases as a companyscales.S&M Expenses to Revenue%By

46、 Fiscal YearFindings and InsightsBy Fiscal YearBy Annual Revenue28benchmarkGeneral and Administrative(G&A)expensesmeasured as a percentage of revenue is a long-standing measurement to determine how muchcapital is allocated to administrative resourcesincluding Finance,Human Resources and the CEO.The

47、percentage of G&A expenses to revenue typicallydecreases as a percentage of revenue as a companyscales.In the early days of a companys evolution,thisnumber can be higher as the CEO and head ofFinance expenses are traditionally captured In G&A.Viewing G&A expenses as a percentage of revenueshould be

48、done in context of company size.G&A Expenses to Revenue%By Fiscal YearFindings and InsightsBy Fiscal Year29benchmarkResearch and Development(R&D)expenses measured as apercentage of revenue is a long-standing measurement todetermine how much capital is allocated to softwaredevelopment which is a prim

49、ary function in R&D for SaaScompaniesIn software and SaaS companies,R&D is a key to sustainedcompetitive advantage.Often the most innovative SaaScompanies will over index on software developmentinvestment throughout its life.It is interesting to note that this metric remained fairly stable atmedian

50、over the past three years,however the increased focuson expense management did decrease the top quartile entrypoint to 20%in 2023 versus 23%in 2022.As with most metrics and their associated benchmarks,thismetric should be viewed in context of company size and as ishighlighted on the following page-b

51、y Go-to-Market motion.R&D Expenses to Revenue%By Fiscal YearFindings and InsightsBy Fiscal Year30benchmarkResearch and Development(R&D)expenses in Product-LedGrowth companies is higher at median(32%)than in Sales-Led Growth companies(30%).This is logical as the producttakes on more responsibility fo

52、r customer on-boarding andconversion to paid accounts with a PLG motion.Additionally,Product-Led Growth(PLG)companies in the topquartile spend 63%of revenue on R&D versus 45%in Sales-Led Growth companies.PLG companies often invest more on user on-boarding,userconversion and user experience within th

53、e application to makea customer“self-service”model a better experience resulting inhigher conversion and higher activation rates.R&D as a percentage of revenue in smaller companies istypically higher as it is the initial center of focus in the earlydays.As companies scale there is a wide range of in

54、vestmentsthat continue to be made in product evolution and innovationbased upon the company profile,focus and product category.R&D Expenses to Revenue%By GTM Motion and ARRFindings and InsightsBy GTM MotionBy Annual Revenue31Annual Recurring Revenue(ARR)per Employee increased inimportance as the Saa

55、S industry entered the era of cautiouscapital in 2022 and 2023and continues in 2024.This metric increases as a company grows,and forcompanies considering entering the public market should be$300K and above.In this years research,companies in the$50M-$100Mmade great progress towards the$300K per empl

56、oyeerange,at$281,902 at median.ARR per Employee RatioBy Company SizeFindings and InsightsbenchmarkBy Annual Revenue32benchmarkThe Annual Recurring Revenue(ARR)to Capital Ratio measures howmuch ARR is generated per dollar of capital raised.One of the key variables not captured in this metric is cash

57、that has beenraised but not yet consumed which is why Bessemer Venture Partnerscreated the Cash Conversion Score which removes cash on hand from thecalculation.The goal is to reach and then move to an ARR to Capital Ratio to over 1.0.Once this ratio is above 1.0 it shows that the ARR is now greater

58、than thecapital raised to generate ARR.With the reduced growth rates in 2023,coupled with the high level ofexternal capital raised in the 2020 2021 timeframe,the median ratiodecreased in 2023 to.80.Effectively this benchmarks says that for every$1 of external capital raised$.80 of ARR has been gener

59、ated across the population.It is important to analyze this in context of company size which ishighlighted on the next page.ARR:Capital RatioBy Fiscal YearFindings and InsightsBy Fiscal Year33benchmarkThe Annual Recurring Revenue(ARR)to Capital Ratiomeasures how much ARR is generated per dollar of ca

60、pitalraised.The value is historically lower in venture backedSeries A and Series B companies,typically with a valuebelow 1.The ratio begins to show material improvement asa company scales to$50M ARR and above.In this chart segmented by annual revenue,that trend line ishighlighted by the.87 median fo

61、r companies in the$20M-$50M range,which is materially higher than the.56 medianfor companies in the$5M-$20M range.Unfortunately,the data we had for companies larger than$50M ARR did not meet the statistical significancethreshold we require to publish a benchmark thoughtraditional wisdom suggests it

62、should be close to or greaterthan 1.ARR:Capital RatioBy Company SizeFindings and InsightsBy Annual Revenue34benchmarkThe Burn Multiple measures how much cash is burnedmeasured against Net New ARR as calculated by:Net Burn/Net New ARR=Burn MultipleNet Burn is measured by subtracting cash operating ex

63、penses from cashrevenue.Burn multiple is an investor centric method to understand how efficientportfolio companies are growing ARR against consuming cash.Burnmultiples in the 1 2 range are considered good,and any thing below 1 isconsidered great for venture backed companies.Companies with a Burn Mul

64、tiple greater than 2 become concerning,especially if they are in the$20M ARR or greater range.An interesting point in 2023 was that with the reduced growth rates thatcompanies in the$50M and above range experienced resulted in burnmultiples which were approaching the 2.0 and above that serves as a r

65、edflag to investors.Burn MultipleBy Company SizeFindings and InsightsBy Annual Revenue35benchmarkParticipantProfile36Participant ProfileBy Fiscal Yearbenchmark37N=936benchmarkParticipant ProfileBy Average Contract Value38N=936benchmarkParticipant ProfileBy Primary Target Segment39N=936benchmarkParticipant ProfileBy Solution Type40N=936benchmarkInteractiveBenchmarks41Interactive Benchmarksbenchmarkit.ai/2024benchmarks42THANK YOU 2024 B2B SaaS Benchmark ReportSponsorsPERFORMANCE METRICS43