12 High Growth SaaS Stocks that are Profitable

Published on March 1, 2023 at 6:21 am by Ramish Cheema in Hedge Funds, News

In this piece, we will take a look at 12 high growth SaaS stocks that are profitable. For more stocks, head on over to 5 High Growth SaaS Stocks that are Profitable.

Cloud computing is one of the hottest industries right now, with the advent of large scale computing enabling firms to avail a vast variety of services digitally. One important and crucial segment of the broader cloud computing industry is the software as a service (SaaS) industry. This sector, according to the Massachusetts Institute of Technology (MIT), consists of all industries that deliver software applications over a network (you can check out some SaaS companies at 10 Profitable SaaS Companies for 2023). This provides numerous applications, that range from the everyday user accessing digital services such as collaboration platforms to firms accessing supply chain and logistics data over a network instead of physically monitoring their operations.

Naturally, these diverse use cases lend the SaaS industry some lucrative valuations, despite the fact that they primarily sell software products that do not have the advantage of strong or high prices typically enjoyed by hardware. For instance, while an iPhone can cost you anywhere in excess of $1,000, a Netflix subscription costs significantly less. Placing a dollar figure on the SaaS industry’s value, a research report from Fortune Business Insights reveals that the industry was worth $215 billion in 2021. In just a year, or by the end of 2022, the firm believes that the sector would grow to $251 billion. From then onwards to 2029 end, it outlines that the sector can grow through a compounded annual growth rate (CAGR) of 19.7% to be worth an estimated $883 billion by the end of the forecast period.

It adds that the industry is growing because of a variety of factors such as the need for a central data analytics platform and cross collaboration across different software. Fortune Business Insights also mentions the growing role that artificial intelligence is playing in the industry as it shares that the SaaS part of a business’s operations is being significantly transformed due to the integration of both AI and machine learning tools. Additionally, the market itself is segregated into various sectors such as enterprise resource management, analytics, and collaboration. Out of these, collaboration should outpace the market in terms of growth, with an estimated CAGR of 21.8%.

This explosive growth is also clear when we analyze companies that report most of their revenues from SaaS. As part of our research, we studied dozens of firms and looked at their balance sheets. As is the case in other industries too, firms with lower market capitalization are currently experiencing explosive growth. In fact, the lowest quarterly annual revenue growth of the top fifteen firms part of our research was more than 30%, and it went as high as 106%. However, since these firms are not generating a profit, they were excluded from our research. However, some firms that are both growing and profitable are SentinelOne, Inc. (NYSE:S), Intuit Inc. (NASDAQ:INTU), and BlackLine, Inc. (NASDAQ:BL).

Our Methodology

We sifted through dozens of companies that generate the bulk of their revenue in the SaaS industry. They were then ranked according to their annual quarterly revenue growth for the latest quarter. Then, each firm’s income statement was studied to determine if it is profitable or not. The top fifteen picks are listed.

Don’t Miss: 10 Small Cap SaaS Stocks Hedge Funds are Piling Into

High Growth SaaS Stocks that are Profitable

12. Adobe Inc. (NASDAQ:ADBE)

Q/Q Sales Growth: 9.9%

Number of Hedge Fund Holders in Q3 2022: 93

Adobe Inc. (NASDAQ:ADBE) is an American software company that is one of the biggest technology firms in the world. It provides collaboration and performance monitoring platforms alongside other services. The firm is based in San Jose, California.

Adobe Inc. (NASDAQ:ADBE)’s fiscal fourth quarter saw the firm bring in $4.5 billion in revenue, which, despite the company’s scale, enabled it to achieve a 9.9% annual net sales growth. Insider Monkey took a look at 920 hedge funds for their third quarter of 2022 investments to discover that 93 had invested in the company.

Adobe Inc. (NASDAQ:ADBE)’s largest investor is Ken Fisher’s Fisher Asset Management which owns 5 million shares that are worth $1.7 billion.

Along with Intuit Inc. (NASDAQ:INTU), SentinelOne, Inc. (NYSE:S), and BlackLine, Inc. (NASDAQ:BL), Adobe Inc. (NASDAQ:ADBE) is a SaaS company that is both growing and earning profits.

11. Equinix, Inc. (NASDAQ:EQIX)

Q/Q Sales Growth: 10%

Number of Hedge Fund Holders in Q3 2022: 39

Equinix, Inc. (NASDAQ:EQIX) is a software as a service company that primarily caters to the needs of the corporate world by providing businesses with access to a centralized platform that enables them to look up the right fit for their scaling and other needs. The firm is based in Rosewood City, California.

Equinix, Inc. (NASDAQ:EQIX) raked in $1.8 billion in revenue and $1.8 million in net income during its fourth fiscal quarter, making it not only profitable but also providing it with a 10% annual revenue growth. As of Q3 2022, 39 of the 920 hedge funds polled by Insider Monkey had bought a stake in the company.

Ian Simm’s Impax Asset Management is Equinix, Inc. (NASDAQ:EQIX)’s largest investor. It owns 659,094 shares that are worth $431 million.

10. Box, Inc. (NYSE:BOX)

Q/Q Sales Growth: 11.6%

Number of Hedge Fund Holders in Q3 2022: 29

Box, Inc. (NYSE:BOX) is a cloud company that provides businesses with a platform that enables them to collaborate with each other and within their organizations. Some features that its products offer include the ability to run processes, create a secure environment, and meet compliance and regulatory requirements. Box, Inc. (NYSE:BOX) is headquartered in San Francisco, California.

Box, Inc. (NYSE:BOX)’s latest fiscal quarter saw the firm post an 11.6% revenue growth. At the same time, its fourth quarter was also the first time that it had managed to post a net profit. The quarter saw Box, Inc. (NYSE:BOX) rake in $4.9 million in profits, after posting a $3.2 million loss in the previous quarter. This profit was driven primarily by cost cutting and other measures, as the firm only increased its revenue between Q3 and Q4 by $4 million. By the end of September 2022, 29 of the 920 hedge funds polled by Insider Monkey had bought Box, Inc. (NYSE:BOX)’s shares.

Box, Inc. (NYSE:BOX)’s largest shareholder is Robert G. Moses’ RGM Capital. It owns 3.9 million shares that are worth $121 million.

9. The Descartes Systems Group Inc. (NASDAQ:DSGX)

Q/Q Sales Growth: 12%

Number of Hedge Fund Holders in Q3 2022: 17

The Descartes Systems Group Inc. (NASDAQ:DSGX) is a supply chain software as a service provider. Its platform allows users to conduct business with each other alongside tracking and tracing their shipments.

The Descartes Systems Group Inc. (NASDAQ:DSGX)’s third quarter of fiscal 2023 saw it earn $121 million in revenue which marked a 12% annual growth. The firm further expanded its operational portfolio in February 2023 after it acquired a last mile cloud company. 17 of the 920 hedge funds surveyed by Insider Monkey in Q3 2022 had invested in the firm.

The Descartes Systems Group Inc. (NASDAQ:DSGX)’s largest investor is Henry Ellenbogen’s Durable Capital Partners which owns 3.9 million shares that are worth $275 million.

8. Autodesk, Inc. (NASDAQ:ADSK)

Q/Q Sales Growth: 13.3%

Number of Hedge Fund Holders in Q3 2022: 62

Autodesk, Inc. (NASDAQ:ADSK) is a software company that provides engineering and design products. These allow professionals such as architects and engineers to develop their products, create realistic renders, and evaluate them before rushing to full scale construction. The company is headquartered in San Rafael, California.

Autodesk, Inc. (NASDAQ:ADSK) reported $1.2 billion in revenue in its quarter ending in October 2022, which allowed the firm to post a 13.3% annual growth. At the same time, it generated $198 million in net income, marking growth over the previous three quarters. 62 of the 920 hedge funds part of Insider Monkey’s third quarter of 2022 survey had invested in the firm.

Ian Simm’s Impax Asset Management is Autodesk, Inc. (NASDAQ:ADSK)’s largest investor. It owns 1.3 million shares that are worth $243 million.

7. Veeva Systems Inc. (NYSE:VEEV)

Q/Q Sales Growth: 16%

Number of Hedge Fund Holders in Q3 2022: 42

Veeva Systems Inc. (NYSE:VEEV) is a healthcare software as a service provider. It enables healthcare companies to manage their daily operations, conduct research, market and sell their products, and maintain regulatory compliance. Veeva Systems Inc. (NYSE:VEEV) has operations all over the world in Europe, North America, the Middle East, Asia, and other regions. The firm is based in Pleasanton, California.

Veeva Systems Inc. (NYSE:VEEV) is expanding its regional presence in the U.S., as it plans to open a new office in Kansas City, the firm announced in February 2023. Its latest quarterly results marked a 16% annual revenue growth, and the firm’s trailing twelve month net income is $396 million. Insider Monkey took a look at 920 hedge fund holdings for last year’s third quarter to determine that 42 had bought the firm’s shares.

Greg Poole’s Echo Street Capital Management is Veeva Systems Inc. (NYSE:VEEV) largest investor. It owns one million shares that are worth $177 million.

6. SPS Commerce, Inc. (NASDAQ:SPSC)

Q/Q Sales Growth: 19%

Number of Hedge Fund Holders in Q3 2022: 19

SPS Commerce, Inc. (NASDAQ:SPSC) is a supply chain software firm that was set up in 1987 and is headquartered in Minneapolis, Minnesota. The firm enables its customers to manage orders, optimize their performance, and run and operate their warehouses.

SPS Commerce, Inc. (NASDAQ:SPSC) posted $122 million in revenue for its fiscal quarter ending in December 2022, allowing it to achieve a 19% annual growth. The firm’s profits for the full year 2022 stand at $55 million. 19 of the 920 hedge funds part of Insider Monkey’s Q3 2022 study had owned a stake in the firm.

SPS Commerce, Inc. (NASDAQ:SPSC)’s largest shareholder is Jim Simons’ Renaissance Technologies which owns 139,900 shares that are worth $17.9 million.

SentinelOne, Inc. (NYSE:S), Intuit Inc. (NASDAQ:INTU), SPS Commerce, Inc. (NASDAQ:SPSC), and BlackLine, Inc. (NASDAQ:BL) are some high growing profitable SaaS firms.

Click to continue reading and see 5 High Growth SaaS Stocks that are Profitable.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up