FORR Q3 2024: CV bookings miss targets; pipeline hits $500K/head
- Strong pipeline and sales execution: The sales team is advancing toward a $500,000 rolling pipeline per quota-bearing headcount and actively applying a new sales methodology, which is driving improved deal quality and better retention metrics.
- Favorable market trends for 2025: Executives noted that tech budgets are increasing and the vendor world is stabilizing after significant layoffs, suggesting a more supportive environment for Forrester's offerings.
- Strategic focus on high-value clients: By divesting noncore small clients and emphasizing the migration to the Forrester Decisions platform, the company is concentrating on more profitable, senior-level engagements for sustained contract value.
- Underperformance in contract value (CV) bookings: Analysts noted that CV bookings were below plan in Q3 and that some pipeline opportunities fell short of the expected strength, which could impact future revenue momentum.
- Challenges in penetrating senior decision-makers: The sales team indicated difficulties in consistently reaching and converting senior executives to secure strong opportunities, potentially limiting the effectiveness of the pipeline and future bookings.
- Client base contraction amid strategic realignment: The decline in overall client count, partly from shedding smaller clients and the restatement following divestitures, raises concerns about a narrowing revenue base and potential future challenges in growth.
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CV Bookings
Q: Concerns over low CV bookings?
A: Management noted that while some segments underperformed, overall CV bookings remain on track with adjustments underway and expectations for a stronger Q4, highlighting ongoing pipeline improvements. -
Budget Outlook
Q: How will budgets look in 2025?
A: Leaders indicated that tech budgets are rising in 2025, which bodes well for targeting senior technology executives and supports the company’s strategy. -
Go-to-Market Metrics
Q: How do you track sales pipeline success?
A: The team is monitoring progress closely, aiming for $500,000 of rolling pipeline per quota-bearing headcount and refining opportunity quality as part of their continuous methodology. -
Sales Readiness
Q: Is the sales team fully prepared?
A: Management confirmed that the sales team has completed its training and is executing the new sales methodology effectively to drive engagement with senior decision-makers. -
Senior Penetration & Pushback
Q: What challenges exist in seat expansion?
A: Executives reported that while their focus on senior-level penetration is progressing, the most common pushback stems from budget concerns, which they are addressing by emphasizing the high ROI of their continuous guidance service.
Research analysts covering FORRESTER RESEARCH.