SaaS Revenue Per Employee Benchmarks by Stage
Understanding revenue per employee is crucial for SaaS businesses. This metric helps assess team efficiency and overall financial health. Here's a breakdown of typical benchmarks by annual recurring revenue (ARR):
Early Stage (<$10M ARR)
Early-stage SaaS companies often generate $100,000-$150,000 in revenue per employee. The focus at this stage is primarily on growth, not efficiency.
Scaling Stage ($10M-$50M ARR)
As your SaaS business scales from $10M to $50M ARR, aim for $200,000-$250,000 in revenue per employee. Operational optimization begins, but investment in sales, marketing, and product remains high.
Growth Stage ($50M-$100M ARR)
Growth-stage companies ($50M-$100M ARR) should target $250,000-$300,000 per employee. Maintaining rapid growth while demonstrating operational discipline is key.
Mature Stage ($100M+ ARR)
Mature SaaS companies with $100M+ ARR typically achieve $300,000-$400,000 in revenue per employee. This range supports cash flow and competitiveness. Public SaaS companies often operate within these figures. Some highly efficient companies, like Expensify, have achieved $1M per employee at IPO.
While $400,000 per employee is a good long-term goal, prioritize growth and team building in the early stages. Efficiency naturally improves as your SaaS business matures.
"Where Is $400k in Revenue Per Employee Coming From? Doing more with less."
— Jason Lemkin (@jasonlk) June 12, 2024
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