Exploring Revenue Per Customer
Average revenue-per-customer calculations are not an exact science. For example, when Workday first started out, it gave discounts for paying three-year subscriptions in advance as a way to fund its growth. Now that the company has gone public it has plenty of cash and payments in advance are much closer to one year. That front loading obviously raises the per-customer avarage. Still, the gulf between Workday and other SaaS firms is pretty wide. Salesforce.com, for example had about $1 billion in revenue across around 100,000 customers, so that averages to around $10,000 per customer, per quarter -- clearly an indication of a less-substantial technology footprint and lots of small-company customers.