tomtunguz.com · 2019-06-24 · 2537d

100k+ ACV SaaS Companies: Do Their Metrics Differ from Other SaaS Companies?

This analysis compares financial metrics of high-ACV ($100k+) SaaS companies at IPO against the broader SaaS population, finding that enterprise-focused businesses differ meaningfully only in gross margin (~60% vs. 66%), while revenue growth, net income margin, S&M spending, and CAC payback period remain statistically consistent. The research suggests that higher support costs, infrastructure demands, and professional services requirements for enterprise customers drive lower gross margins despite other operational similarities.

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Metrics in this report

CAC Payback Period

18months

median

$100k+ ACV SaaS companies at IPO

CAC Payback Period

15.5months

median

All SaaS companies at IPO

Gross Margin

60percent

median

$100k+ ACV SaaS companies at IPO

Gross Margin

66percent

median

All SaaS companies at IPO

Net Income Margin

-31percent

median

$100k+ ACV SaaS companies at IPO

Revenue Growth

70percent

median

$100k+ ACV SaaS companies at IPO

Sales and Marketing Spend

54percent of revenue

median

$100k+ ACV SaaS companies at IPO

Sales and Marketing Spend

15percent of revenue

best-in-class

Veeva (high-ACV SaaS company at IPO)