Ideal Revenue Growth Rates for SaaS Companies

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No all-knowing being, person, or company can tell you what the “best” revenue growth rate is for SaaS companies. However, there are some general guidelines for SaaS companies at different stages of growth.

Venture capitalists, for example, believe that post-seed or pre-Series A SaaS companies should aim for MRR (monthly recurring revenue) growth rates of 15-20% per month.

According to SaaStr creator Jason Lemkin, it typically takes SaaS companies seven to 10 years to grow their annual recurring revenue from $1 million to over $100 million. Growing revenue by 20% month singapore mobile database over month is unusual, but it is doable.

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The difference between revenue, sales and profit
Before we dive into this topic, let's make sure we're on the same page. Although they're sometimes confused, sales and profits are not the same as revenue. Here's how they differ.

Revenue : The total amount of money received from all sources such as sales, investments, licensing, royalties and more is called revenue. Expenses are not included.
Sales : Receipts from the sale of goods or services are called “sales”. In addition, they do not include expenses.
Profit subtracts costs from income.
Another key difference between sales, profit, and revenue is that while revenue growth should be viewed as a strategy rather than a goal, sales and profit are focused on achieving a goal.