{"id":8199,"date":"2024-07-19T13:29:35","date_gmt":"2024-07-19T13:29:35","guid":{"rendered":"https:\/\/tup.kxe.temporary.site\/where-are-martech-vendors-finding-their-revenue-lets-take-a-look\/"},"modified":"2024-07-19T13:29:35","modified_gmt":"2024-07-19T13:29:35","slug":"where-are-martech-vendors-finding-their-revenue-lets-take-a-look","status":"publish","type":"post","link":"https:\/\/okdesign.ca\/fr\/where-are-martech-vendors-finding-their-revenue-lets-take-a-look\/","title":{"rendered":"Where are martech vendors finding their revenue? Let\u2019s take a look"},"content":{"rendered":"


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Business is a little sluggish for a number of martech vendors. They will tell you so themselves (just keep reading). Put the blame on interest rates. Put the blame on the well of VC money that is running pretty dry. Put the blame on pandemic-era spending sprees, during which many companies filled in the gaps in their tech stacks.<\/p>\n

But save some blame for a maturing market. Can you think of a lot of companies that need a CRM<\/a> or marketing automation platform<\/a> today but don\u2019t have one?<\/p>\n

Earlier this month, MarTech contributor Gene De Libero wrote about the lack of net-new deals available to martech vendors<\/a> as the category reaches saturation. Many industries go through this. It is often easier to sell something when no one has it but many people need it. It gets a little harder once everyone has it.<\/p>\n

The good news for martech vendors is the SaaS business model revolves around recurring revenue from subscriptions, so there\u2019s a steady flow of cash coming from the customers.\u00a0<\/p>\n

The bad news is that growth in a mature market becomes more focused on a few strategies, including cross-sell, upsell and competitive displacement.\u00a0<\/p>\n

It\u2019s hard to displace a competitor when you\u2019re talking about martech applications that sit at the center of the stack. Migrations are expensive, time consuming and introduce a significant amount of risk. It\u2019s the incumbent\u2019s advantage. When you change the apps at the center of the stack, you end up making changes throughout the stack. You can feel the ROI slipping away in the process.<\/p>\n

Yet despite saturation, interest rates, vanishing VC cash and more, major martech vendors are bringing in a lot<\/em> of money. I mean an awful lot of money<\/em>. (Though not, in some cases, as much money as Wall Street wants.)<\/p>\n

I examined the earnings results from four SaaS martech vendors to better understand where they\u2019re finding success and where they\u2019re seeing challenges. The following is based on earnings for the first quarter of calendar year 2024, which for some companies is fiscal year 2025.<\/p>\n

Dig deeper: <\/em><\/strong>14,106 martech tools reveal 3 trends you should master<\/em><\/strong><\/a><\/p>\n

HubSpot\u2019s Q1 2024 results\u00a0<\/h2>\n

In summary:<\/p>\n