SaaS Revenue per Employee Benchmarks for B2B Companies

A useful metric for SaaS businesses is the amount of Annual Recurring Revenue (ARR) per employee. A high revenue per employee implies the efficiency of the business and is a proxy for it’s ability to break-even or become profitable (the majority of expenses for tech companies is people). As the business starts to scale, revenue per employee is expected to increase.

The table below shows the result of a survey by SaaS Capital looking at the median ARR per full time employee in 2022 for venture backed companies.

ARR Median Revenue per Employee
< $1MM $25,750
$1-3MM $59,108
$3-5MM $92,327
$5-10MM $107,143
$10-20MM $128,961
> $20MM $170,950

The table below shows the result from Capchase grouped by sector in H2 2022.

Sector Median Revenue per Employee
Consumer goods & services $45,177
Marketing & media $61,082
Corporate services $51,042
Financial solutions $40,335
Data & cloud $52,259
Industrial solutions $67,122
Real estate & construction $69,110
Health & life sciences $75,326

See also:

  • SaaS churn benchmarks are another useful measurement for figuring out the efficiency of a SaaS business (if churn is high, the amount of growth required to replace old customers goes way up)
  • Burn multiples along with revenue per employee can be a short-hand way of keeping burn in check—e.g. set a headcount cap until you hit the revenue goal to stay on track