Q2 2024 Report
RepVue
H1-2024 is in the books and after a hint of progress in Q1-2024, Q2-2024 reversed course and we’ll have to continue to wait on signs of a broader recovery. Quota attainment has moved sideways for 6 consecutive quarters, seemingly stuck in this low-40 range, begging the question is this the new normal? Several sub-industries made new lows in Q2-2024 since we began tracking in Q1-2022, leaving only select Enterprise sellers seeing relative success with improved quota attainment and expanding ACVs.
The RepVue Cloud Sales Index (comprising 213 companies with ~39,000 quota carrying sales professional ratings and over 1 million data points), enables us to provide a clear breakdown of where sales professionals are succeeding, which organizations are outperforming their peers, and other deep insights into the B2B sales landscape.
01
Lower for Longer?
Sales professionals in the RepVue Cloud Sales Index might feel a bit stuck in the mud, with a sixth consecutive quarter of team quota attainment percentages in the low 40s. Only 42.68% of sales professionals hit quota in Q2-2024. Compare that to 43.85% in Q1-2023, and the glimmer of progress observed in Q1-2024 has reverted back to the downside.
The question now becomes: how much longer will quota attainment rates be stuck here? Is this a new normal? Yes, attainment is a function of reps ability to sell and to some extent a proxy for product demand., But these consistently low attainment rates are also due in part to the overcapacity of GTM teams. While many have slowed hiring, few have meaningful reduced capacity. That may need to be corrected before we can expect a return to attainment rates north of 50%.
02
Cybersecurity and Other Industries See New Lows
Dragging down the entirety of the Cloud Index, Cybersecurity vendors reported only 36.50% quota attainment in Q2-2024, marking an Index-wide low since we began tracking in Q1-2022.
52.21%Q2 23
50.19%Q2 24
3.9%Data & AI
41.29%Q2 23
40.96%Q2 24
0.8%Finance & ERP
45.46%Q2 23
44.01%Q2 24
3.2%Marketing Tools
47.29%Q2 23
45.29%Q2 24
4.2%HR Tools
41.32%Q2 23
39.7%Q2 24
3.9%DevOps & Developer Tools
41.78%Q2 23
44.41%Q2 24
6.3%Productivity & Collaboration Tools
38.68%Q2 23
36.5%Q2 24
5.6%Cybersecurity
42.49%Q2 23
37.64%Q2 24
11.4%Vertical Industry Software
39.22%Q2 23
40.2%Q2 24
2.5%Sales Tools
The Cybersecurity vertical seems particularly crowded, and the consolidation to platform providers over point solutions — evidenced by M&A in the space — combined with a degree of spending fatigue on the category make it extraordinarily difficult to find success as a quota-carrying sales rep. Vertical Software and DevOps & Development Tools also saw new lows.
There are some bright spots, however. Data & AI saw a Q2-2024 Quota Attainment of 50.19%, and Productivity & Collaboration Tools continued to rise in Q2-2024 to 44.41%, up 6.29% YoY.
03
200K+ ACV Deals Stand Apart
Sellers with average deal sizes $200K+ are seeing the highest likelihood of success.
Reps in the $200K+ range see average quota attainment at 47.68%. While nominally down 2.83% YoY, these higher-ticket sellers have significantly better attainment rates than those observed by lower-ACV peers.
The remainder of sellers are seeing attainment in the low 40s, in line with the broader Cloud Index.The only bright spot here is those selling the smallest deals(under 10K).This cohort saw quota attainment rise 2.67% YoY to 43.83%, good for solo second.
Deals under $10k
2.67%
Deals $10k - $50k
2.94%
Deals $50k - $100k
0.1%
Deals $100k - $200k
3.32%
Deals $200k+
2.83%
04
Transactional Deal Cycles Compress Further
Sales cycles continued to shorten in Q2-2024 for the smallest deal sizes.
Perhaps attributable to increasing quota attainment observed on the same deal size, reps selling deals under $10K ACV saw a 13.49% YoY acceleration in sales cycle lengths to just over 35 days. The $10K–$50K cohort also saw some progress, improving 3% YoY to just 72 days. The cohorts of larger deal sizes saw mostly immaterial changes in their sales cycles, with YoY changes less than 1%.
Deals under $10k
13.49%
Deals $10k - $50k
2.97%
Deals $50k - $100k
0.71%
Deals $100k - $200k
0.38%
Deals $200k+
0.21%
05
ACVs in SMB and Mid-Market Continue to Drift Sideways
Enterprise and Key Accounts trend higher.
The smaller, and often transactional deals typically found in the SMB and Mid-Market divisions have largely maintained their ACVs from Q1-2022 when we began tracking the Cloud Index. Enterprise and Key Accounts have established a gradual upward trend, slowly capturing more value for their offerings. This is perhaps a function of the competitive landscape among cheaper products, and the tightening of budgets on less “mission-critical” solutions.
06
Included Companies
We created the RepVue Cloud Sales Index by aggregating ratings data from 213 companies and categorizing them into SaaS sub-industries. This report comprises ~39,000 ratings from quota-carrying sales professionals who worked at these organizations.