2025 SaaS Benchmarks Report by High Alpha
Contents
Introduction
Executive Summary
AI-Driven Market Rebound
Growth & Efficiency
SaaS Metrics & Trends
People
Founder Insights
Closing
E ffi cient Growth Lives at the Intersection of Retention and CAC
NET REVENUE RETENTION AND CAC MATRIX Companies With 106%+ Net Revenue Retention and CAC Payback Under 10 Months Achieve Materially Stronger Growth and Rule of 40 Scores
! INSIGHTS
Low CAC (Less Than 10 Months)
Medium CAC (10-15 Months)
High CAC (Greater Than 15 Months)
The relationship between NRR and acquisition efficiency remains one of the strongest predictors of SaaS performance. Companies that pair high NRR with low CAC deliver dramatically better outcomes — nearly doubling growth rates and Rule of 40 scores compared to peers with weaker retention or longer paybacks. Optimizing acquisition and retention is a solid strategy for all businesses. Founder Takeaway Focus on expanding within existing customers and maintaining efficient go-to-market execution to sustain healthy growth and capital efficiency as you scale.
High NRR (Greater Than 106%)
71%
53%
40%
Median Growth Rate
47%
38%
21%
Median Rule of 40
Medium NRR (98%-106%)
45%
50%
25%
Median Growth Rate
33%
38%
19%
Median Rule of 40
Low NRR (Less Than 98%)
30%
20%
10%
Median Growth Rate
33%
27%
5%
Median Rule of 40
Source: 2025 SaaS Benchmarks Report by High Alpha
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