SaaSletter - A New SaaS Demand Index

Oct 14, 2022

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!

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:

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):

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]

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: