Read our interactive PDF report:
We’re excited to update the SaaS Demand Index with data through June 2024.
For our new readers: the Demand Index is derived from high-intent Google Search volume data. Due to a partial shift in Google’s methodology, this month’s sample consists of 177 companies and 180,000+ searches (versus our usual 340-company universe). However, all graphs are pro forma on a historical basis (i.e. apples to apples).
Slides here:
Reminder: this is a directional, free, and ever-evolving* analysis → always do your own due diligence.
Moreover, the data captured here is best characterized as top-of-funnel or dark funnel → factoring in sales cycle length, do NOT use this Demand Index as a predictor of near-term financial results and/or financial guidance.
Industry-Wide Data
High-intent search volumes were up +19% year-over-year and -1% month-over-month. Said differently, June was 4% below the March 2024 peak.
The new YoY graph below compares the high-intent search trends to Gartner’s 2024 cloud spending forecast only to give context. In the footnotes, we note possible “apples versus oranges” dynamics when comparing the SaaS Demand Index versus Gartner.**
The new YoY graph above compares the high-intent search trends to Gartner’s 2024 cloud spending forecast only to give context. In the footnotes, we note possible “apples versus oranges” dynamics when comparing the SaaS Demand Index versus Gartner.**
Trends By Product Category
This slide presents growth for the last month and last three months, respectively:
Callouts from recent trends:
Above Average Performers: Consistent with prior months, the strong performers were Security, Communications (still attributable to certain pricing actions), Industry Specific / Vertical, HR + HCM, Sales, and Finance + ERP (see our earlier “Office Of The CFO Software Surge” note enhanced with G2 adoption data).
June SaaS Employment Index
As a reminder, our SaaS Employment Index covers employment trends for 3,500+ private US HQ’ed software companies. Slides for this month are available here:
*In an effort to publish closest to month end, we are accessing the underlying API data “early” (relative to the typical SEO and PPC users that do not require such immediacy). Therefore data should be considered “provisional” (i.e. subject to revision by our data provider) and create volatility in the data presented in the 2 most recent months. For this month, Zoom was excluded due to nonsensical data via the API; the historical data presented, however, is also pro forma to exclude Zoom.
This report was first published on cloudratings.com.