Dear SaaStr: What is a Good Benchmark for SaaS Revenue Per Employee by Stage?
The benchmarks for SaaS revenue per employee vary by stage, but here’s a breakdown based on where you are in ARR and efficiency expectations:
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Early Stage (<$10M ARR): At this stage, revenue per employee is typically lower, often around $100,000-$150,000 per employee. This is because you’re still building out your team, investing in growth, and not yet at scale. Efficiency isn’t the primary focus here—growth is.
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Scaling Stage ($10M-$50M ARR): As you scale, you should aim for $200,000-$250,000 in revenue per employee. By this point, you’re starting to optimize operations and drive more efficiency, but you’re still likely investing heavily in sales, marketing, and product.
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Growth Stage ($50M-$100M ARR): Here, you should be targeting closer to $250,000-$300,000 per employee. Companies at this stage are expected to show more operational discipline while still growing quickly.
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Mature Stage ($100M+ ARR): At scale, the benchmark is typically $300,000-$400,000 in revenue per employee. Public SaaS companies often operate in this range to remain cash-flow positive and competitive. For example, companies like Zoom and Samsara have hit $300,000 per employee at IPO, while outliers like Expensify (with a highly efficient PLG model) hit $1M per employee at IPO. Overall, efficiency is going up.
Ultimately, the goal is to get to $400,000 in revenue per employee as you scale, but it’s a journey. Early on, focus on growth and building the team you need to hit your next milestones. Efficiency will come as you scale and mature.
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