The Metrics Brothers The Iconiq State of Software 2025 Report
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Oct 8, 2025 Explore the future of software with key insights from the latest industry benchmark report. Dive into AI segmentation, revealing over half of companies aren't utilizing AI. Discover how revenue multiples and growth trends vary by company size, plus the significance of the Rule of 40 in predicting success. Hear about trends in net revenue retention, CAC payback periods, and the importance of adopting new AI-focused metrics. Finally, get a glimpse into companies experiencing remarkable growth, while considering the evolving role of engineers.
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Watch How AI Capital Is Charted
- Capital flowing into AI appears massive but charting choices can hide growth; 1H 2025 is on track to exceed 2024.
- Always check time-period comparisons to avoid misleading flat-lines.
NDR Has A New Stable Range
- Net Dollar Retention (NDR) appears to have stabilized with top-quartile benchmarks around 121% for < $100M and ~110% for > $100M.
- Interpret these as top-quartile targets, not medians, because Iconiq often reports quartiles.
Verify The Sample Before You Benchmark
- Always check the sample (end count) before trusting a benchmark; some Iconiq charts use very small n.
- Treat extreme shifts (e.g., CAC payback falling to 21 respondents) with skepticism and dig into footnotes.