SaaS Companies 

Executing the Expansion Stage 

  

Openview Partners has released the results of their recent survey  of expansion stage SaaS companies. About half of the respondents are in the $2.5M to $50M Annual Recurring Revenue (ARR) range. These are companies that are in the midst of expanding.

One of the interesting results is that two out of three companies increased their pricing including the larger companies. This resulted in a 25% or higher increase in ARR for 40% of the companies and almost all saw an increase in ARR with the price increase. And of course the ARR increase is accomplished without an increase in sales costs. If you're thinking about a price increase here is a great resource for planning out the details of that increase.

The other interesting result is that companies that use a Product Led Growth strategy have faster revenue growth, higher multiples, have higher gross margins and spend less on sales and marketing costs. Although the term product led growth is primarily being used by Openview Partners at this point it is an interesting concept.