2025 SaaS Benchmarks Report by High Alpha
Contents
Introduction
Executive Summary
AI-Driven Market Rebound
Growth & Efficiency
SaaS Metrics & Trends
People
Founder Insights
Closing
Expansion ARR Becomes the Growth Engine at Scale
NET NEW REVENUE FROM NEW CUSTOMERS VS. EXPANSION FROM EXISTING CUSTOMERS Efficient Scaling Depends on Maximizing Expansion ARR Beyond $20M ARR
Median New Customer ARR Median Expansion ARR
Company Size by ARR
New Customer Revenue vs. Expansion Revenue as Percent of Net New ARR
! INSIGHTS
Less Than $1M
15%
85%
New logo acquisition drives early- stage momentum, but expansion revenue becomes increasingly important as companies scale. Companies with over $50 million ARR now generate roughly 60% of new ARR from existing customers, reflecting the rising importance of product stickiness, multi-product adoption, and effective account expansion strategies. Founder Takeaway This highlights the need to build scalable customer success motions and pricing models that convert retention into recurring growth.
$1-5M
23%
77%
$5-20M
34%
66%
$20-50M
40%
60%
60%
40%
Greater Than $50M
Source: 2025 SaaS Benchmarks Report by High Alpha
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