C9 Revenue Index Points to Moderate Growth in 2015
SILICON SLOPES, UT — December 9, 2014 – C9 announced today that among Fortune 2000 companies based in the US, pipelines have grown year-over-year by 4.3 percent, setting the stage for moderate revenue expansion in 2015. This growth is driven by a 10 percent increase in the number of deals companies are pursuing and offset by a 3.5 percent decline in average deal size. The C9 Revenue Index also surfaces improvements in sales productivity with deals closing 8 percent faster than they were last year, while close rates have increased by 1.8 percent. The C9 Revenue Index is a unique leading indicator of economic growth. The index is based on analysis of the coming year’s pipelines for over 50 US-based Fortune 2000 businesses representing a broad range of industries. In conjunction with its forecasting and pipeline management solution, C9 maintains visibility into the full set of deals that its clients are pursuing as well as associated sales cycle lengths and close rates. Most economic indices, by contrast, are based on historical performance metrics and provide limited insight into future outcomes. The International Monetary Fund (IMF) is currently projecting US GDP growth of between 2 and 4 percent for 2015. The C9 Revenue Index indicates that pipeline health is substantial enough to deliver against the high end of this estimate. “Over the past 12 months, we’ve seen a healthy increase in pipelines,” said Michael Howard, C9 CEO. “I’m also encouraged by the fact that sales organizations are doing a solid job of converting that pipeline into revenue. The fact that deals are closing faster and that close rates aren’t declining indicates that sales organizations are well poised to convert strong growth at the front end of their pipes into material revenue gains. Earlier this year, that wasn’t the case. We saw sales cycles push out and conversion rates drop slightly. That’s natural when deal flow starts to pick up. But we’re now seeing much more sales discipline. Despite the headwinds businesses are currently facing, and based on the momentum I’m seeing, 2015 has the potential to be a very strong year. ” The C9 Revenue Index also provides a credible counterpoint to those who are less sanguine about US economic prospects. The Jerome Levine Forecasting Center (which anticipated the crash of 2008), for example, sees a 65 percent chance that the US slips back into recession in 2015. While the threats that it highlights (including US dependency on weakening international markets, as well as looming deflationary threats) will likely have some impact on growth over the next four quarters, their dampening effect has yet to manifest itself in a material way. “When an economic downturn is looming on the horizon, pipelines are the canary in the coal mine,” said Andy Twigg, Chief Data Scientist at C9. “The fact that the volume of deals is growing and that conversion rates are going up certainly seems to favor those who are lining up behind the bulls.”
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- Xant Team