Q3 2024 Report
RepVue
2024 is plugging along without a ton of change to the overall cloud index performance, although the 42.92% quota attainment is the highest it's been since 43.54% in Q2 2023. So while this isn't a huge jump upwards, it's clear that we've established a floor and we may be showing signs of coming off of that. We're also seeing some additional upward movement in several more sub-industries as well as some metric improvement at the larger AOVs.
The RepVue Cloud Sales Index (comprising 238 companies with ~40,000 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
Signs of Life?
Q3 2024 marks the 7th straight quarter where the percent of sales team members hitting quota in the index came in between 42% and 44%, this time 42.92%. This does represent a very slight improvement from the past few quarters, and the highest mark since Q2 2023. While this is only a 1.3% improvement from last year, it's clear that the macro conditions that impacted the tech and software industry are not going to push this metric lower for the time being. So now we continue to wait and monitor progress for when a tech sales recovery may begin in earnest. We believe that large scale capacity reductions are a thing of the past, but we'll still need to allow addressable market growth to catch back up to our current capacity. We do not expect this to be a short term process.
02
Vertical Software Bounce Back
Four of the 9 sub-industries show y/y improvements in our quota attainment metric.
47.97%Q3 23
47.37%Q3 24
1.3%Data & AI
42.2%Q3 23
40.27%Q3 24
4.6%Finance & ERP
43.16%Q3 23
42.74%Q3 24
1%Marketing Tools
47.18%Q3 23
45.16%Q3 24
4.3%HR Tools
41.33%Q3 23
43.3%Q3 24
4.8%DevOps & Developer Tools
38.97%Q3 23
42.75%Q3 24
9.7%Productivity & Collaboration Tools
39.32%Q3 23
37.89%Q3 24
3.6%Cybersecurity
39.84%Q3 23
43.02%Q3 24
8%Vertical Industry Software
37.87%Q3 23
40.6%Q3 24
7.2%Sales Tools
The cybersecurity sub-industry continues to lag behind others, likely due to sellers experiencing heavy competition in every meaningful deal. We continue to monitor the data and AI space as a top performing vertical for sales professionals as technology spend continues to flow there. Also of note from Q3 2024 is an 8% y/y improvement as well as marked improvement from earlier this year in the vertical specific software sub-industry, reversing course from last quarters Y/Y decline. Click the box to see which vertical software companies were pushing this positive momentum.
03
$200K ACV Deal Win Rates
Those selling $200k ACV deals have the highest chance of hitting quota.
For Q3 2024 compared to Q3 2023, the most notable changes occurred in larger deals. The $200k+ deals increased from 46.37% in Q3 2023 to 47.74% in Q3 2024, showing a steady improvement in hitting quota for the largest deal size. In contrast, the $10k-$50k category saw a slight improvement, moving from 41.45% to 41.88%. Other deal size categories, like $100k-$200k and under $10k, remained fairly stable, with only marginal changes year-over-year, indicating that most fluctuations occurred in the higher-value deals.
Deals under $10k
2.85%
Deals $10k - $50k
1.04%
Deals $50k - $100k
4.27%
Deals $100k - $200k
0.26%
Deals $200k+
2.95%
04
Removal of Red Tape for Transactional Deals
Sales cycles for <$10K deals continued to shorten in Q3 2024
Smaller transaction sizes were most negatively impacted by the tech macro slowdown; mostly because with large deals there was already a lot of red tape, procurement, finance approval requirements, and more to get large, complex transactions done. That red tape was quickly applied to smaller deals when budget was under much more scrutiny, but now we might be seeing some easing of that with the continued shortening of >$10k transactions.
Deals under $10k
10.68%
Deals $10k - $50k
1.04%
Deals $50k - $100k
0.41%
Deals $100k - $200k
0.92%
Deals $200k+
1.39%
05
Key Accounts and Enterprise Deal Sizes Continue to Trend Up.
Large deals getting... Larger?
In Q3 2024, Enterprise and Key Accounts saw solid growth, with Enterprise ACVs rising from $163,177 to $184,493, and Key Accounts increasing from $251,467 to $283,246 year-over-year. Mid-Market remained stable, moving slightly from $56,268 to $57,727, while SMB ACVs dipped from $25,231 to $22,053, showing some volatility in smaller deals.
06
Included Companies
We created the RepVue Cloud Sales Index by aggregating ratings data from 238 companies and categorizing them into SaaS sub-industries. This report comprises ~40,000 ratings from quota-carrying sales professionals who worked at these organizations.