Average Company Lifespan

Average Company Lifespan is the expected number of periods a paying company stays active — the company-level counterpart to account lifespan, derived from the company churn rate. Companies typically outlast individual accounts because they have more users and more embedded workflows to unwind before leaving.

It matters most for businesses that sell to organisations rather than individuals. A company with ten active users rarely churns as readily as a single-seat account, and this metric captures that durability directly.

Divide one by the monthly company churn rate. If companies churn at 5% a month, the average company lifespan is 1 ÷ 0.05 = 20 months. As with accounts, it is only as stable as the churn figure underneath it.

Compare it against average account lifespan: a large gap tells you multi-user accounts are meaningfully stickier, which is a strong argument for driving seat expansion.