Is Your SaaS Business in the Top 50%? Here’s How to Find Out
In today’s competitive SaaS landscape, benchmarking your business against industry standards isn’t just helpful—it’s essential.
Revenue growth, contract value, and team efficiency are all critical indicators of whether your business is scaling sustainably—or falling behind.
So, how do you know where you stand?
If your SaaS business meets the following benchmarks, you’re likely operating in the top 50% of the market:
- Year-over-year revenue growth greater than 20%
- Average contract value (ACV) over $25,000
- Revenue per employee exceeding $170,000
If you’re not there yet—don’t worry. Most companies aren’t. But knowing where you are is the first step toward closing the gap.
Why These Metrics Matter in SaaS
The SaaS business model relies on long-term revenue growth and operational efficiency. These three metrics—growth, ACV, and revenue per employee—are often used by investors, acquirers, and boards to assess company performance and capital efficiency.
Here’s how your SaaS business stacks up compared to the industry, according to the 2025 Benchmarking Metrics for Bootstrapped SaaS Companies with $3M to $20M in ARR:
| Metric | 25th Percentile | 50th Percentile | 75th Percentile | 90th Percentile |
|---|---|---|---|---|
| Revenue Growth Rate | 10.0% | 20.0% | 34.0% | 51.0% |
| Net Revenue Retention | 97.0% | 104.0% | 112.0% | 118.0% |
| Gross Revenue Retention | 88.0% | 92.0% | 95.0% | 98.0% |
| Annual Contract Value (ACV) | $9,928 | $24,875 | $58,942 | $114,063 |
| Revenue Per Employee | $114,846 | $170,139 | $227,778 | $282,313 |
| Number of Employees | 23 | 50 | 70 | 110 |
| Number of Customers in 2024 | 78 | 280 | 636 | 1,435 |
These benchmarks provide a solid framework to gauge whether your SaaS business is in the top-performing tier of the market. If you’re falling short in any of these areas, there’s room for improvement—but with the right strategy, you can close the gap.
What Each Metric Tells You About Your SaaS Business
Let’s break down why these specific metrics matter and what they indicate about your company’s performance:
1. Year-over-Year Revenue Growth (>20%)
Sustained double-digit revenue growth signals healthy demand and product-market fit. It also increases your company’s valuation and investor interest.
- 25th Percentile: 10.0%
- 50th Percentile: 20.0%
- 75th Percentile: 34.0%
- 90th Percentile: 51.0%
A strong growth rate puts you on track for expansion, while stagnating growth means it’s time to reevaluate your strategy.
2. Average Contract Value (> $25,000)
A higher ACV typically means:
- Stronger enterprise positioning
- Higher customer LTV
- More efficient customer acquisition costs (CAC)
- 25th Percentile: $9,928
- 50th Percentile: $24,875
- 75th Percentile: $58,942
- 90th Percentile: $114,063
A $25K+ ACV places you in the premium tier of SaaS companies, often with more predictable revenue and lower churn.
3. Revenue Per Employee (> $170,000)
This metric evaluates how effectively your team is generating revenue. Higher revenue per employee reflects:
- Efficient team structure
- Scalable operations
- Healthy margin potential
- 25th Percentile: $114,846
- 50th Percentile: $170,139
- 75th Percentile: $227,778
- 90th Percentile: $282,313
Top-quartile SaaS companies consistently achieve $170K–$250K per employee.
Not in the Top 50% Yet? That’s Okay. Here’s What to Do Next
Falling short of these benchmarks isn’t failure—it’s an opportunity. The key is understanding which metric is holding you back and why.
We help SaaS companies identify and improve core financial levers by:
- Analyzing your cost base and CAC-to-LTV ratio
- Building forecasting models tied to revenue drivers
- Optimizing pricing, packaging, and retention
- Streamlining team structure to boost operational efficiency
The goal? Sustainable growth with strong capital efficiency—the kind that puts you in the top-performing tier.
Let’s Talk About Your SaaS Metrics
If your business isn’t yet meeting top-tier benchmarks, we can help you build a path to get there. Whether it’s improving your pricing model, aligning sales incentives, or fine-tuning your GTM strategy, we bring the financial insight to back every decision.
Curious where your SaaS business stands—and how to raise your metrics?
Let’s connect. Your numbers can—and should—reflect the value you’re building.