Dec 2023 subscription data: B2B SaaS had it's toughest month yet

[PW-Metrics-Paddle-Logo-White](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Z03qn9gW7Y8-PT6lZ3pkW9fxd4y6HfjxsW85S3MH1M3t-YW7sk1M16JJ-83VQJX3k5rl1rVW7Pqp1c2fqBrjW4NL9cH5CWc7XW4k3Sf_1zmLgVW3_GwRd6pqLkzVPQpBC4JC1KnW4m0VBn9hQqQMW9f2pcm6C0VjrW3Mmq458mnwWmVB4PNZ496ymCW55S4m84cJzXtW1Zfq4-7_WfMBW1p3MW-1p-wH4W72dFZX61G8bmW4-4KRY6Ml3cXW2nH7nH3wtWWgW7sTBcW6wHgCFW4L1P2v3jQhcnW7s4XL_3HFyPcW2ZYkHT5p8kdBN6NGnFwBhXRkW4dkXkw9bYcJrN3w1fGffsT5Hf6BdX7l04) Subscription Market Report [December 2023: The worst month for B2B SaaS, and a review of the year](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3l3W9cVYwV4H-p5FW29TP785cK_flW337mMl7bNT-mN64_MhsYsMqkW2rygNv7__qljW2B2_XW48yRLlW8Kw0ZZ78N0ssW6JhKSn2rCSVSW2v_NGs2M5zM2VM02MN2g6HX2N7GS_l0M7RmTW87tyq04dSM2_V3gBqX8dz1GzW3Dz5G88YtZllW2s77WG8WbWKMW8BLNCY7lccK9W5tHNq-1zvfJgW73KKSj2j2MjwW8x6m917k6w-ZW6RR0jH4BKR29W6RGV_K5CHdYjW4lPbdc94zFNtW8HsM9K766VyyV_RJp06yXpb1N67qSflqjl9KVFLxTW2RD2szW2Gzy2s1PYvtjW8D1MF9654sr2f2rDqQg04) [B2B SaaS growth declined for the first time](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3pLW1Qrc2t7NV8LZN3hWRMsVRDLyW1j9GKw8RgzkcMHfZKhCYyTPW7RXrT98y9vZXW4Pp81s7KPqx6W3sTPMR2tPg-cW7w9tn023nv2DW8tdY6F8F0kKbW6Jv6ds4mnDHJVkD4L83qr9SvVT7xdn1c3q6zW2t1hdC8s5xMgVdmSBl4y28txW1t24Cl8cm094W7bHjjb6bh6WCW4HyL2p20D_x-W84WsGf5LPQMTW1XDSZW8VQnxvW19sLHL7NvSGPW3QPjrk6rJ5pNW34k-Ly1Kx28XW5kQMCM7299S5N6LpRFppkkGzW1SgwXv3yhrW1W22Gtg_8FzDYCW6jMWbr4nhtHPW2h3lqM8BCfrwf3QBnGq04) [B2B CAGR by Month Dec 23](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3kwW98lQ7D48fMhqW3rjj-j8jyR72W77JCY87l7cTYW7J56Dz4D4cmlW6mSvmm4w_nVSW738Gyd3y7QRNW94BMhl282-s7W4gWP5Y1-vQpMW1gW1Jl8jKf-lW1RPnwT5mC5lBN5xSjHKmTQCvW877rKQ8-8BDdW5L2j075sX7FTW8HHXVD7S3JfkW7Q0-mF702-SwW5925VG1RYRCwW3ML5Y149q8pkW7yV6Tn9jKj1DN8VK4L9mTGlxW8SF-MD22GJcDW4ggRX12wTstgW6YqW-949yCxkW8BMpGC7mKjKMW72WBVp4sw81vW7GPm8X1HjgbrW2qZV2c5mtkwXW1WzNZH3ND7MxW70-_Qq2P6lfHf8Wsf3b04) Latest data from [ProfitWell Metrics](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Z03qn9gW7Y8-PT6lZ3q1W40fb-01jMq25W9lHwSH4yhHJbW1rfPtR3wsc2LW5f1vGT5tKPFcW3cKkcL45hLR0W10pztp8z84cgW1RHDWM3pY3TjW7Yb7yz5k8SGHW3xM7VQ83-FxDW3CRQzm3knjPMW3tyB6H1cTJ_6W7gxPz51hzNhpW58RQ_88Z6Fs-W9340Jf4hKWP4W5Brgpr5KDyy2W2G8k6V5b2J-JN3LtMgWldkfXV2rY5S79Q46tW69vhqF4Xs3lSW2BScdY2c4GLkW6kVbQg4GnHZtW9jSFTl7N0hW3W5dQn8h45tdWfW60MLMm69xhtkW8p1QJY9fJ-TWV25d5d1bdb8lf54HX6s04) shows that MRR growth dipped to -4% for the first time since we began tracking the index. As you'll see, this is likely caused by poor sales performance and high churn rates. [READ THE FULL REPORT](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3ktW2dT09f3DNDtBV6vVpt2-BTFtW7vMX3W6tQ9LJW6XYY1_8fkBj2V-nMDx24HHh4W6mSzJS6LQMvlVgQNk61jN2kGW3zjV962Q2TT2W4bkhkG1FJMWbW88jLfq2pPdHPW7LCgl52S6DzzW4rt0Q04n9nyQW41tFpg3VGXMyW5TcBBW4n5jf1N4dP2H5zV5t1W2-jWvb1XDMmxW4NX3gm4B2fZ-W4Lsw7g6y_93TW59Q8Mk76NQ5KW3WfKBg6RJD6zW52NTZ16Rfw-GW2CXKNR8q2911W6XcXVx4YSgHSW8006B03_xRGsW4CC_qf1prc4hVTsXnM1NPxFDW2B40c36qyMQTW8K_Xds8J9QzGf6DqzCM04) [Net new sales was at the lowest since 2020](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3nSVDSvCr1HQz3wW7qqgqt9lynCgMgWqW8q4XZDW4Ql_rv8tQTykW4ZlVfT3GgxfKN4Cbb2XSXqjzVmBc8w7yC1w9W6rQ8448W1zv0W6GNnZc3997TBW26n_WJ8jkjcJW4W9ZS68Wj8KcW2t5hrt3rrrc-W4vWpp_1VY99fW22663s5-S-RyW3LXP4s6XFLbhW5yVP1W52skv0M8jDLpgRB69W3qHTWG6WJHKmW4GcsKZ1kdDYtW9grG1r59qVpMVnMpgD3YlLDJW3rKxRz4b7d14W1-Zn4P9cQzn-W2Wp_ym6Xf2dyW7QWHWb7ZQsqBN2NctLkGt4-HW77bSVs7bzJ5PW4BsnxT5TD_QSf8fYvFR04) [B2B SaaS Index Net New Sales Dec 2023](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3pSW9c9s0B7sKgJrW8xvQt-6by85hN7RtQGt8W8V3W2jHNGP1Z7ZvVV51VC-1hkr0yW5vJLSy78JgypW65XJDT89Xpr8W5V-ntx2LFF_GW1JlfYy32FrbvW4-X7qX1QcZwtF2d61P384mnW87P2h789C7JXW14hH0X8QX58SW3JkTyt99frDxW6PcC285xXXkdVRcksq3tcSYWW5YJ_YY2MXtkPVr7Z_n7Jr2YdW2lP2h88BmpcCW4kpvMk7dKSFBW64lHmG4-fkzpW6Csvq81T7VkpW5QyP6j11CK5GW3DlTP95N3wfyW8_yvxN4LRk29W2XB_k66d7qM5W6NslXm6ZFpPcW5jtNGQ3ZkLCSdDXJrb04) The Sales Index slumped to an average of 1.22 making it the lowest sales month since December 2020. It was down 14% from November 2023 and down 15% from December 2022. [READ THE FULL REPORT](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3mqMZTzP1R-y3PN3_p6ZSQ6LsGN1Sl2sBWqCxzW4sJ4Ll4r6JP3W6nY1WK1DsQFZN8ctzHzDdtpkW17-qtG1c8FJHW5fw_cr6G7d4cW41swNx8ctpKRW1HhKfm86W1HHN1YWXr2K9rPbW3GW_tP8pVLVRW90VJ066ZP5FTN8D95T3R_GzMW3sY1BK2WXyrcVR0y8v8cp5G8W6xJdpn36PtflVL2s3p42_vGSN6SnKGxSf1PWVzls_52rFV3BW26d_ft8qHhYyW4V2zQ74s6YWtW13x0_z7J1PRrN2RkLZDCZcVlW3_n11997Rx3wW89pBpL4zqt-tW6T-4gv7-dG5HW1jRfb54yVFZhd690C804) [Churn was at an all-time high](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3mdW5zrrLy24vdRSW4RLnWp4HcYmGW2J3-cR3NcJWyW6TvrNp2lGz_NW7QG_3r6HnGRbVCpWNd84xt8FW14Xgpl6g761NW5Nchz5503mR1W8T71Z77fqv9nVKbXK47ww-FfW3tJW9h4zfSTxVRJxvK546l9sW3M82NC3XHY2kVm1N-m4gJqGbN3b35-M9y6rQW6DN0f71fGxQjW2_W9-32qPNp4W7r6qVf45ThgCN5zVFQf-0Q9wVY3R6X8_xlGWW1RhsRz1y_MBtW54Zq6h2_PXS5W7HhbBt3wWBhfW1zjtjq2xPKvJW2_GMK54fWpd1VTGnhx2YH5YKW4-hWyB4mfQldW8mxYBZ7pmzk_f534yyz04) [B2B SaaS Index MRR Churn Dec 23.001](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3mcW3gmhVM86lfX_W6SdMff6VHp4hV5LlZK5kNQpwW9djg-K6b_lRTW2_fnsp5z7ZrwN4Qxhdt-qgWcW6M1f8c9cKp7dW6Cmdjf6rrP4nW7N1KQd1WGTKQW20d0m-1h1VhBW4qrd8v1BgLn-VWbt5h12ZRXCW4yljz01ZGgYxW64T6ZK4FYhQ4N4LhdZTY-rlMW82W81n6Fj7p9W5nMV_r8HqPmnVgwY7X3VvnBpW7Qth3N7D9bC8W2VdtMq42zTsqVhxgRk4Dptv3W5bg6xp11xNPQW1k-pc85ftLTcV-Q5sP2DJ8RWVgQjGf3F-_H9N67hpLcM-jGsW1YwZvk6gYG2hMKGxwdntWsCf8NGlKx04) December’s MRR churn ended at an average of -1.85, making it the highest month for churn on record. This was a 7% increase in churn from December 2022 and a 25% increase against December 2021 figures. [READ THE FULL REPORT](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3m1W8Qrh-82gMm9NW635fv51Qny22N44wX05nhFwLW8n19ZH2k2L2kW5dvQMZ2SvjXFW44fNls67cN6jW4rwdy973MV1jW186-Wf1ChkvSN4gHDZTLjQhNVwbzsP6hSRsxW7w4B3r4bxBq7W1XfBN25NcqWYW1D67_V3PKL3SW3BbM3R9803jkW4YZ-Gk4VshY6W116PN92jwM0TW5K3fJh6HysvCW4khVjM59-9p7W702KF54QgQJRW3GVvNN7w8LgGW1PypHk8lktQgW1tHrrS2r-2jvN94D87G4nV7GN27ggmRN0SytW8xQtYz7j-jwmW8Cd5Y_27zzQHW6ytYK93WhRytW31BkM41d0kPff39mL1q04) [Overall, 2023 was a tough year for B2B SaaS](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3kNW8cgbJ65nqSdwW4tz3y-652J9bW6l2m3M654dPmVPwDMQ8m-sT_W1W81XC67fT-GW5LgRhL7Rx52WV__Fsh3XFxBhW4kCtzj4QKmDsW3NBzsc8tXtC-W7KHvpc6ly7HmW1nNK8T3lCkWnN9b1SbvcRdMYW3GgR4V4z-2W-W7Ddw9y3Tk41xVtqx894xc54hW7VYNkG88lhpTW3MBQxk5Hg1f2N825SHq-bS7tW2Ms-dS6Lq-x8W79QCY58XtDfDW8spVzM7Nnn-sW8SF_P846h44dW7yS5my1yCQDHW1wQfvl6gydDBW8NCC1V2HhkTqW3TmnJW7QgGGrW4F_R3c6HR0NkW1BBPZB7HyG_8f5XrhxH04) [B2B SaaS Index YoY Dec 23](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3pWN2PjCr2ybgNWW5yddlx7rvtbWN7GbYv3QnJN-N683CmQrXS65W4HbCgL3VfWsnW3W3FLq4y9K5_W8ZM1cB1ThTRJW238T1F4Cqj69VbWs2Y7GXLJkV8m0TH13T43dW7d1F9V4rRdJFW7Hfsb02g7c_jW6p5WDM4sDRxDW69VwsJ2QYTjDW7BTjnn23xtDgW5hnTHs54w38gW7tvZHB4T6h4LW1pzwTY4G0L3XW1HS-pN1j7hQHW6khJXl5TD7wWW2V3wVf7LYcPXW1MXtMb9kvwV3W4F80qM92chl8W95Y-VB8fyLphW7kYCK02TcqNdV_XmfP90WNxBW8T43x54-XQ9wW62N5qg5BvJVHf5_L8Dl04) Unsurprisingly, 2023 was the toughest year for B2B SaaS, with growth slowing down to just 11.1% this year. This walesss a big drop compared performance in both 2022 at 33%, and 2019's pre-pandemic performance at 34.2%. On the bright side, the tough market has forced companies to improve their internal efficiencies. Companies that launched and monetized AI have also outpaced their peers. Going into 2024, startups reported to be more optimistic than they were going into 2023. [READ THE FULL REPORT](113/bNfN04/VVV8zq71LvHXW4_lR1z1qKvxmW8BHpjy58KNbCN1n_9Zj3qn9gW8wLKSR6lZ3n3W4K72gm4y0J84W5wnzW55984MgW4RYgwV5vJH7VW91xj7Y4wtMGbW2Nqsky4N6F-3W6K2SKS1YpDhBVQtWly90zj2VV2bwV-3ryvFfW4FzRYj4_jRy2W70PkKS5BmPTtV3Spv04jhjhxN43qSlpf7gchW8vS_Mk6QC0gYW5ZjXwS3bNzsBW5qlsqK12GMB4N7tnDwR6ZMGxW6gRF8K1QpgRDW4vJxCm5YXzj-W5bfqxr46YZx7W8xPgZN6P0rn4W2jqktT1gXb60W8RQv5n2-pycQW6V_4rq3kWNjVW88YrZx81Pww6W7P8Nws5QDKx-W2NPhjQ9fKgBMW41vH1r7-KGYVW3bW6gl4TSrFLf6JJCjs04) How can we help you win in 2024? As we kick off 2024, we'd love to hear from you! What content would be useful to help you navigate 2024? 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