The software-as-a-service (SaaS) model has skyrocketed in popularity in the last couple of years as it offers cutting-edge software solutions without demanding massive upfront spending. With organizations increasingly digitalizing and adopting cloud-based software solutions to support a hybrid workforce in the post-pandemic era, the demand for SaaS solutions should keep rising.
The simplicity, agility, cost-effectiveness, increased accessibility, and security offered by SaaS have made it the most reliable option for numerous businesses. According to a report by Gartner, the service-based cloud application industry will be worth $143.7 billion by 2022.
Given the industry’s strong growth prospects, fundamentally sound SaaS stocks WM Technology, Inc. (MAPS), The Sage Group plc (SGPYY), and The Descartes Systems Group Inc. (DSGX) could be good additions to one’s portfolio at their current dips.
WM Technology, Inc. (MAPS)
MAPS provides e-commerce and compliance software solutions to retailers and brands in the cannabis market in the United States, Canada, and internationally. The company also offers advertising solutions; Sprout, a customer relationship management solution; and Cannveya, a delivery, and logistics software solution.
MAPS’ total revenue increased 39.6% from the prior-year quarter to $57.45 million in the fiscal first quarter ended March 31, 2022. The cash balance for the quarter came in at $55.86 million, reflecting an increase of 184.9% year-over-year.
The consensus EPS estimate for the fiscal year ending December 2022 represents a 94.9% improvement year-over-year. The consensus revenue estimate of $260.58 million for the same period represents a 34.9% increase from the previous year.
MAPS has lost 19% over the past month to close the last trading session at $5.51.
MAPS’ strong fundamentals are reflected in its POWR Ratings. The POWR ratings are calculated by considering 118 different factors, with each factor weighted to an optimal degree.
MAPS has a B grade in Quality and Value. It is ranked #6 of 26 stocks in the Software – SAAS industry.
Beyond what is stated above, we’ve also rated MAPS for Momentum, Stability, Sentiment, and Growth. Get all the MAPS ratings here.
The Sage Group plc (SGPYY)
Based in Newcastle upon Tyne, United Kingdom, SGPYY provides accounting and business management solutions and services for small and medium businesses in North America, Europe, and internationally.
On April 22, 2022, SGPYY announced the acquisition of Mateo cloud savings and loan software from MAS Integrated Solutions to help non-profit organizations better manage programs that involve a revolving loan fund. This should enable SGPYY to provide value-added services to the non-profit sector, thereby helping the company expand its market segment.
SGPYY’s recurring revenue increased 8% year-over-year to £429 million ($452.27 million) in the fiscal first quarter, while its total organic revenue improved 5% year-over-year to £458 million ($482.84 million).
Analysts expect SGPYY’s revenue for the fiscal year ending September 2023 to be $2.55 billion, indicating an increase of 7.1% year-over-year.
Over the past month…
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