View above about Issue: Current Paying Users' Subscription Lifetime in Months if Box is One of a Few Alternatives for Them
One note I make in terms of the churn side of things and just the overall dynamics is alined with that our contract duration hasn't been impacted in this environment as we continue to be a critical part of our IT -- our customers' IT strategies. So we've actually seen the average contract duration, length of those commitments improving a bit over time. And that's on average about 18 months across our customer base. Our larger enterprise customers are much more likely design multi-year commitments with many of our smaller customer signing one-year deals. But I just wanted to diﬀerentiate between the payment duration impact and the contract duration lack of impact.
As contract sizes increase, gross dollar churn consistently trends downwards (presumably related to longer term contracts). For SaaS companies with media contract sizes of over $5,000, the median annual churn will be ~10%. A 10% churn rate implies a 120 month subscriber life, justifying the 120 day figure cited. The ranges for these SAAS companies could easily fall as high as ~20% (justifying the 60 month sub life) or as low as ~5% (justifying a 240 month life).