Data breaches and cyber-attacks continue to hinder the performance of software-as-a-service (SaaS) companies. However, the industry is expected to grow exponentially over the long term, owing to…
increasing demand from almost every industry as part of their digital transformation efforts.
Furthermore, the remote working trend is expected to continue with the recent resurgence of COVID-19 cases, to the benefit of the SaaS industry. According to a Research and Markets report, the global SaaS market is expected to grow at a 10% CAGR between 2021 and 2023.
So, we think it could be wise to bet on SaaS stocks The Sage Group plc (SGPYY – Get Rating) and MiX Telematics Limited (MIXT – Get Rating), which possess strong fundamentals and promising growth prospects.
Click here to check out our Software Industry Report for 2021
The Sage Group plc (SGPYY – Get Rating)
Headquartered in Newcastle upon Tyne, the United Kingdom, SGPYY provides technology solutions and services to small- and medium businesses internationally. It also offers cloud-native solutions, such as Sage Intacct, Sage People, Sage Accounting, Sage Payroll, and CakeHR.
SGPYY unveiled its Sage 20 for 20 on July 28. It is an accountant accelerator program designed to provide partners with solutions and resources essential to grow and scale their business. AZ Zabala, the company’s Director of Accounts Sales and Strategy, said, “Our partners are excited about the measurable impact and their ability to deliver more value to customers and mitigate costs.”
SGPYY’s recurring revenue increased 5% year-over-year to £1.22 billion ($1.43 billion) for the nine months ended June 30, 2021. It was driven primarily by solid software subscription growth, which came in at £920 million ($1.08 billion), up 11% year-over-year. As a result, its subscription penetration increased to 69%, versus 64% in the prior-year period.
SGPYY’s annual revenue is expected to increase 3.9% year-over-year to $2.67 billion in its fiscal year 2022. The stock has rallied 23.5% year-to-date to close yesterday’s trading session at $40.02.
SGPYY’s POWR Ratings reflect this promising outlook. The company has an overall B, which translates to…
Continue reading at STOCKNEWS.com