Announcing the Newly Revised & Expanded 2017 Subscription Economy Index

By Gabe Weisert June 5, 2017

We are pleased to announce that thanks to the tireless efforts of our Chief Data Scientist Carl Gold, Zuora’s landmark Subscription Economy Index has been completely revised and updated. A few notable highlights:

 

  • It is a truth universally acknowledged that as companies mature their growth rates begin to decline. That’s not the case in the Subscription Economy.  The $100M+ companies in our index are growing their recurring revenue around 40% faster than the overall SEI average.  That’s an annual growth rate of roughly 27% compared to 19%. Those are remarkable figures.

 

  • This is the first year we are including Europe in the Subscription Economy Index. As it turns out, in the last six months,  EMEA has grown just as fast as North America. That’s particularly amazing when you consider the fact that Europe is coming off a “lost decade” of stagnant growth. If you’re starting a business in Europe, recurring revenue models are your ticket out of the doldrums.

 

  • Does SaaS show any sign of slowing down? Not in our study. In the last 6 months (ending in March 2017), SaaS companies have been relatively unaffected by the slowdown in US GDP, while media and telecommunication companies have slowed slightly along with the broader market.

 

  • Who struggles with churn the most? Among the business models, churn is highest for B2C and lowest for B2B companies. For industries, churn is highest in media and lowest in SaaS. Over the past six months, B2C churn rates have lowered, while other verticals have seen their churn rates edge up slightly.

 

Please download the report to find the latest key metrics (as of Q1 2017) on:

  • The Subscription Economy Index Versus S&P 500 & US Retail Sales & US GDP
  • The Two Growth Levers: ARPA & Net Account Growth
  • B2B & B2C & B2A Sub-Indices
  • Subscription Revenue Growth By Industry
  • The Subscription Economy By Revenue Band
  • Subscription Churn Rates By Sub-Index & Industry
  • The Subscription Economy in EMEA vs North America

Download and enjoy!