The Most Important SaaS Metric of All: Net New Customer Growth
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HubSpot’s Impressive Growth to $2.3 Billion in ARR
HubSpot has reached a significant milestone with its ARR surpassing $2.3 billion. What’s even more impressive is the 23% annual growth in new customer acquisition, despite already having over 200,000 customers and generating $2.3 billion in ARR. This steady growth in net new customers is a key performance indicator in the SaaS industry.
In the early days of SaaS, the focus was primarily on ARR growth. However, the importance of Net Revenue Retention (NRR) has become evident. NRR is crucial for sustaining growth in the long run.
The Importance of Net New Customer Growth
Public SaaS and Cloud companies have shown that high NRR and net new customer growth are essential for scaling past $1 billion in ARR. It’s crucial to continue expanding the customer base to maintain growth momentum.
Key Metrics for Sustainable Growth
It’s vital to keep growing the circle of customers and aim for at least a +20% increase in new customers annually, even at higher ARR levels like $100 million or $1 billion.
View statistics on SaaS and Cloud leaders
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+ 13% new customer count growth
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+ 22% ARR growth even at
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+ $1.7 billion ARR on average
Ensure your customer count is growing at least 50% as fast as your NRR to secure future success and avoid reliance solely on upsells.
Focus on Net New Customers
Your net new customers are critical for long-term success. Make it a priority to set a Net New Customer goal each year to align with your future plans and avoid over-reliance on existing accounts.
