drive.google.com · 2022-08-31 · 1373d

2022 Private SaaS Company Survey Results - KeyBanc Capital Markets

KeyBanc Capital Markets' 13th annual survey of 110+ private SaaS companies reveals a median ARR of $17.6MM with 31% organic growth, though growth forecasts for 2022 decline to 36% as S&M efficiency deteriorates and free cash flow margins turn negative. Key metrics show subscription gross margins of 77%, blended CAC ratios of $1.20, and only 32% of companies achieving the Rule of 40, with significant variance by go-to-market model, customer profile, and software category.

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Metrics in this report

2022E Organic ARR Growth Forecast

36percent

median

Companies with $5MM+ ARR

Annual Gross Dollar Churn

10percent

median

2021, excluding upsells and expansions

Annual Logo Churn

5percent

median

2021

Annual Net Dollar Retention

110percent

median

2021, including upsells and expansions

Annual Non-Renewal Rate

8percent

median

2021, dollar basis

Average Billing Frequency

1year

median

Survey participants

Average Contract Length

1year

median

Survey participants

Blended CAC Ratio

1.20ratio

median

Fully-loaded S&M spend per $1 new ARR, 2021

CAC Payback Period - Blended

11months

median

Gross margin basis

CAC Payback Period - New Customer

17months

median

Gross margin basis

Capital Consumed to Reach $100MM ARR

72.7MM

median

2021 data

Capital Consumed to Reach $25MM ARR

31.5MM

median

2021 data

Capital Consumed to Reach $5MM ARR

9.2MM

median

2021 data

EBITDA Margin

-10percent

median

2021

Existing Customer CAC Ratio

0.61ratio

median

Upsells and expansions, 2021

Field Sales Blended CAC Ratio

1.00ratio

median

Field-sales dominated companies

Field Sales Gross Dollar Churn

9percent

median

Field-sales dominated companies

Field Sales Net Dollar Retention

110percent

median

Field-sales dominated companies

Free Cash Flow Margin

-5percent

median

2021, private SaaS companies

General & Administrative as % of Revenue

19percent

median

2021

Headcount to Revenue Ratio

154thousand per FTE

median

2021 ARR per FTE across survey

Inside Sales Blended CAC Ratio

0.91ratio

median

Inside-sales dominated companies

Inside Sales Gross Dollar Churn

13percent

median

Inside-sales dominated companies

Inside Sales Net Dollar Retention

104percent

median

Inside-sales dominated companies

Median ARR

17.6MM

median

Private SaaS companies surveyed in 2022, excluding <$5MM ARR

Median Customer Count

413count

median

Survey participants

Median Employees (FTEs)

181count

median

Survey participants

Median Initial Annual Contract Value

40thousand

median

Survey participants, 2021

New Customer CAC Ratio

1.78ratio

median

2021, private SaaS companies

Organic ARR Growth

31percent

median

2021 actual, private SaaS companies with $5MM+ ARR

Professional Services Attach Rate

8percent

median

Field-sales companies

Professional Services Attach Rate

2percent

median

Inside-sales companies

Public Listing Exit - FCF Margin

-20percent

median

Companies targeting public listing

Public Listing Exit - Median ARR

59MM

median

Companies targeting public listing

Public Listing Exit - Organic Growth

56percent

median

Companies targeting public listing

Research & Development as % of Revenue

25percent

median

2021

Rule of 40 Achievement Rate

32percent

median

Percentage of surveyed companies meeting or exceeding 40% threshold

Rule of 40 Median (Growth + Profitability)

25percent

median

Entire survey group

Rule of 40 Non-Qualifiers - Median ARR

17.6MM

median

Companies not meeting Rule of 40

Rule of 40 Non-Qualifiers - Organic Growth

25percent

median

Companies not meeting Rule of 40

Rule of 40 Qualifiers - Median ARR

21.5MM

median

Companies meeting Rule of 40

Rule of 40 Qualifiers - Organic Growth

59percent

median

Companies meeting Rule of 40

Sales & Marketing as % of Revenue

40percent

median

2021, private SaaS companies

Sponsor Acquisition - FCF Margin

9percent

median

Companies targeting sponsor acquisition

Sponsor Acquisition - Median ARR

44MM

median

Companies targeting sponsor acquisition

Sponsor Acquisition - Organic Growth

22percent

median

Companies targeting sponsor acquisition

Subscription Gross Margin

77percent

median

2021, private SaaS companies with $5MM+ ARR

Total Gross Margin

73percent

median

2021, including customer support in COGS

Valuation Multiple

6.1x ARR

median

Capital raises or change of control since January 2021

Years to Reach $100MM ARR

9.3years

median

2021 data

Years to Reach $25MM ARR

7.1years

median

2021 data

Years to Reach $5MM ARR

4.5years

median

2021 data