I was recently talking with several SaaS companies that crossed certain customer count milestones.  1,000 paying customers.  5,000.  7,000 in one case.

And I began to wonder: just exactly how many customers does the average public SaaS company have?

The numbers make intuitive sense, but it’s helpful to see them broken about above for top SaaS and Cloud companies at < $2B ARR:

  • The average public SaaS company has ~36,000 customers
  • That goes up to 85,000 for public SaaS companies that mainly sell to SMBs, i.e., with ACVs < $10k
  • It’s right around 13,000 for public SaaS companies that sell mid-market deals ($10k-$100k), probably why we see so many “lower-end” solution sale SaaS companies IPO around 10k customers
  • It’s a bit more than 1,500 for true enterprise SaaS companies ($100k+ ACV)

This isn’t magic math.  If you know your ACV, you’ll know how many customers you need to get to $10m, $20m, $50m, $100m ARR.

But it’s helpful to see it this way.  A reminder that even at $500,000,000 in ARR — the average of the above SaaS leaders — everyone has just scratched the surface in customer count.

TAM is so huge in SaaS right now.  10,000 SME customers, or even 80,000 SMBs, really just isn’t that many vs. what you can do over time.

Related Posts

Pin It on Pinterest

Share This