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- The CRM market is expected to grow annually by 13.5% 📈
The CRM market is expected to grow annually by 13.5% 📈
And also: ServiceNow market beat 👊, Efficiency in SaaS for survival 🏁, WorkWave Q3 🪙, Veeva's new CRM for MedTech 💊
This is the Cloudly Update. Helping you stay above the Clouds.
Today we bring you:
CRM market growth expectations
ServiceNow Q3 earnings beat expectations
Prioritize operational efficiency over growth, a new mantra in SaaS survival
WorkWave Q3 snapshot
Veeva announces new CRM for MedTech
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The CRM software market is expected to grow to $204.66 billion in 2026 at a CAGR of 13.50%. North America holds the largest share of the market.
Social and Mobile CRM are increasingly integrating social media channels into CRM platforms to provide real-time access at any place or time.
An increasing number of customer of organizations and the rising need for customer satisfaction are expected to benefit the CRM market.
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ServiceNow beat market expectations and recorded 21% year‑over‑year growth in revenue of $1,831 million and EPS of $1.96, excluding non-recurring items in Q3 2022.
The company's current remaining performance obligations contract revenue, recognized as revenue in the next 12 months, was at $5.87 billion as of Q3 2022. It represents 18% year-over-year growth and 25% adjusted for constant currency.
The firm now has 1,530 total customers with more than $1 million in annual contract value. The number of customers paying over $10 million in annual contract value in Q3 2022 grew 60% year‑over‑year. Subscription revenues were $1,742 million in Q3 2022, representing 22% year‑over‑year growth and 28.5% adjusted for constant currency.
The company sees Q4 subscription revenues of $1.834 - $1.839 billion.
Q3's outperformance is evidence of their platform's critical nature and the ServiceNow team's strong execution.
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Paddle released the "Survive or Thrive" report to chart the impact of the global downturn on SaaS companies. The survey revealed that:
46% have re-forecasted, re-budgeted or reviewed how and when they will next raise capital.
50% of SaaS companies are focusing more on customer retention over acquisition.
35 % are reducing operational expenditure (OPEX) through analyzing team performance, slimming down salaries and freezing hiring.
One in three SaaS companies say that efficiency is their top priority.
Despite a cloudy economic outlook, confidence for the year ahead remains high.
There is a balance to strike between cost-reduction and expansion strategies, but those that get it right will be best placed to take advantage in 2023 and beyond.
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WorkWave continued to demonstrate robust growth in 2022, with 112% revenue growth year-to-date (YTD) through Q3 and 141% total software growth YTD. WorkWave is expected to exceed $300M in revenue for 2022.
Their Annual Recurring Revenue (ARR) improved 47% YTD, with total bookings growth up 111% in Q3 2022 vs. Q3 2021.
Net retention YTD was recorded at 122%. Employee growth YTD was at 15%. And saw 100% total recurring revenue growth YTD.
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Veeva Systems announced Veeva Vault CRM and content management application for Medtech.
It is built on the Veeva Vault Platform and provides Inventory management and Surgical case management. It also provides Stakeholder navigation across HCPs, hospitals, laboratories, and health systems. It is connected with Veeva Vault PromoMats and streamlines the digital content lifecycle.
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