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SaaSletter - A New SaaS Demand Index

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SaaSletter - A New SaaS Demand Index

Matt Harney
Oct 14, 2022
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SaaSletter - A New SaaS Demand Index

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I'm open-sourcing the first edition of a SaaS Demand Index. Plus the usual curated links.


SaaS Demand Index Background

High-level notes on methodology + data:

  • Driven by high-intent Google search data (i.e. "docusign pricing")

  • Developed using a leading SEO software suite

  • n = 340 SaaS companies

  • Selected for representation (by category, company stages, by customer type) to *approximate* the overall industry

  • Indexed to a 0.0 - 1.0 scale

  • Given the typical sales cycle, consider this a PROXY for top-of-the-funnel demand ONLY and NOT indicative of near-term bookings/revenue

  • This index is a work in progress that NEEDS feedback - my Twitter DM's are open!

SaaS Demand By Customer Size

Despite the macro-environment, high-intent searches remain healthy for SaaS broadly.

Consistent with Gavin Baker's (CIO at Atreides) earlier prediction, our data set shows SMB performing better than enterprise:

Twitter avatar for @GavinSBaker
Gavin Baker @GavinSBaker
@DenehyXXL I think SMB focused software companies are going to significantly outperform enterprise software companies from a fundamental perspective (revenue, etc.) over the next 12 months.
8:30 PM ∙ Oct 3, 2022
86Likes3Retweets

SaaS Demand By Product Category + Company

For the most part, the category-level demand data was in-line with consensus (i.e. strong Security, weak E-Commerce).

HR + HCM was surprisingly strong (best performers: Homebase, Paycor, Trainual, BambooHR)

For the last 3 months (July 2022 - Sept 2022), these companies exhibited the most momentum (trend index >0.8):

Other Demand Indicators = ToFu > BoFu

While the top-of-the-funnel demand above looks OK, the current bottom-of-the-funnel environment looks grim.

A few anecdotes + data points:

[tweet https://twitter.com/SaaSletter/status/1578782630388326400]

Twitter avatar for @SaaSletter
Matt Harney @SaaSletter
MIDMARKET - Quota Achievement *Up* 2.8% in September
Image
4:21 PM ∙ Oct 8, 2022
Twitter avatar for @SaaSletter
Matt Harney @SaaSletter
SMB - Quota Achievement Down 2.1% in September
Image
4:21 PM ∙ Oct 8, 2022

Curation

You Can't Fix a CAC Payback Period: The Operator vs. Investor View of SaaS Metrics - Kellblog — kellblog.com

My note = great insight on the difference between atomic metrics + compound metrics

RevOps2 event this week was very strong - highly recommend you register below to access replays:

Twitter avatar for @rayrike
rayrike @rayrike
SaaS Metrics Palooza is a gathering of the top #saasmetrics thought leaders and experts in one place to share their insights and expertise on making metrics-informed, benchmark validated decisions in a B2B SaaS company. Register for free at: bit.ly/SaaSMetricsPal…
Image
12:33 PM ∙ Sep 6, 2022
8Likes2Retweets
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SaaSletter - A New SaaS Demand Index

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