The annual SaaS Benchmarks Report is an invaluable resource for companies to understand the current landscape. As founders read the report, they may be asking themselves, “how can I take action on these insights to help push my company forward?”. To help answer that question, we pulled out four actionable insights that companies can begin implementing.
1. Higher ACVs Drive Growth and Retention
A clear trend from the report highlights that higher average contract values (ACVs) correlate strongly with both growth and retention.
The fastest-growing companies reported ACVs in the range of $25,000 - $50,000, while the highest retention rates were observed in companies with ACVs between $100,000 - $250,000.
For early stage companies, identifying the right customer segment is crucial. Balancing acquisition costs with long-term retention often means targeting customers who have the budget and flexibility to adopt new solutions.
In Topo’s experience, these customer segments are ideal as they combine purchasing power with a willingness to innovate — making them reliable partners for SaaS startups.
Takeaway: Great companies can be built at all ACV levels, but SaaS companies should evaluate whether their target customers align with these ACV benchmarks to optimize their growth and retention strategies.
2. Default In-Office Teams Grow Faster
The shift to remote work has dominated workplace conversations, but the report uncovers a surprising insight: default in-office teams are growing faster than fully remote teams.
While only 30% of companies require more than three in-office days per week, those that do report a median year-over-year growth rate that is 11% higher than remote-first organizations.
One reason for this advantage may be the ease of disseminating information and building trust when teams work together in person. For fast-growing companies, this efficiency can provide a critical edge.
Takeaway: Companies should weigh the benefits of in-person collaboration against the flexibility of remote work. Hybrid models that prioritize key in-office days may provide the best of both worlds.
3. Vertical SaaS and AI-Native Companies Are Outperforming Horizontal SaaS
As horizontal SaaS markets become increasingly saturated, vertical SaaS (focused on industry-specific solutions) and AI-native applications are emerging as growth leaders.
Companies serving niche industries can differentiate themselves by tailoring their offerings to specific workflows, regulations, and pain points — leading to faster adoption and higher customer loyalty.
Similarly, AI-native companies are capitalizing on advancements in machine learning to deliver intelligent, highly automated solutions, outpacing competitors still reliant on manual or generic approaches.
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Takeaway: For SaaS founders, narrowing your focus to a vertical market or embedding AI capabilities could provide a significant competitive advantage.
4. Early-Stage Companies Invest Primarily in Product and Go-to-Market Functions
Resource allocation is critical for early-stage SaaS companies, and the report emphasizes a clear pattern: young startups allocate the majority of their headcount to product development and go-to-market (GTM) efforts.
For companies under $1M ARR, only 17% of employees are dedicated to Customer Success, Support, or General & Administrative (G&A) functions.
By the time companies grow to $1M–$5M ARR, this number rises to 32%, reflecting the increased need for support as the customer base grows.
Many early-stage companies bridge the gap by leveraging fractional resources for roles like finance, HR, and legal, gaining access to expertise without the burden of full-time salaries.
Takeaway: Founders should focus on building and distributing their product in the early stages while using flexible, cost-efficient resources to handle non-core functions.
Final Thoughts
The 2024 SaaS Benchmarks report offers a wealth of data to help founders and executives understand where they stand and how they can improve. While great companies can be built with a number of different strategies, leveraging these benchmarks can help point early-stage companies in the right direction to optimize their growth.
For SaaS companies looking to grow efficiently, leveraging these benchmarks isn’t just a best practice — it’s a blueprint for success.
