Top 10 Software as a Service (SaaS) companies of 2022

If you are familiar with cloud services, you would know about SaaS. It is essentially a cloud-based software distribution technique, often known as cloud-based software delivery. Users do not install or execute them on their computers; instead, they subscribe to them like they would any other cloud service.

 

SaaS is becoming a very successful option for venture capital firms, from image software to collaboration tools. The following is a list of the most prominent venture capital companies on the circuit to give you a sense of who is driving the charge.

 

Top 10 SaaS companies

 

1. Salesforce Inc:

 

In 1999, four Salesforce founders built a customer relationship management (CRM) system with a revolutionary twist, working side by side in a small San Francisco apartment. 

 

All software and sensitive client information would be housed on the internet and made available as a subscription service. This ground-breaking "software as a service" (SaaS) model swiftly swept throughout the computer sector.

 

Salesforce.com is a large-cap company on the top SaaS stocks list, but the stock still has a lot of space to grow due to its outstanding product offerings, which are gaining traction in a range of industry categories. 

 

Salesforce just announced a stellar first quarter and provided an optimistic second-quarter outlook. Monness Crespi & Hardt raised its price objective for the Cloud-based customer relationship management software provider from $275 to $290, as collected by the database of Yahoo finance.

 

At the conclusion of the first quarter of 2021, the number of Salesforce long hedge fund holdings fell. In the fourth quarter, 97 hedge funds held salesforce positions, compared to 91 firms in the first quarter. Ken Fisher's Fisher Asset Management is the company's largest shareholder, with 12.95 million shares worth $2.7 billion.

 

2. Zoom:

 

This name is familiar to all, especially during the pandemic when every institution was using this platform to communicate with each other. During the pandemic, Zoom has become one of the most successful SaaS companies. 

 

Jose, California. And, to summarize Zoom, is a web conferencing program that offers a variety of services to its customers, such as screen sharing, managing the sharer's screen, and so on.

 

Zoom has a revenue of $1 billion, according to a study released in August 2021 by Zoom Investors. This figure is up 54 percent from the same period the previous year. Without a doubt, as the remote-working culture becomes more mainstream, Zoom's numbers will increase. And there's a good reason behind it. Zoom is straightforward. 

 

It only takes a couple of clicks to attend a meeting. It also offers a separate set of security features to ensure the safety of your video conference. Zoom becomes an instant option because people want to feel safe. Zoom's free plan is adequate in only a few situations.

 

3. Coupa:

 

The SaaS solutions provided by Coupa Software Incorporated assist organizations in managing costs, supply chains, process automation, taxes, contracts, and much more. Revenue for Coupa Software increased by 40% year over year to $166.93 million in the first quarter of 2021. 

 

EPS for the quarter was $0.07, far above the Street's prediction of a loss of 19 cents per share. Subscription revenue increased by 33% during the same time period. The adjusted gross margin was $68.8%, compared to a consensus forecast of 65.6 percent. 

 

The revenue projection provided by Coupa for the second quarter was higher than the Street's expectations. 

 

Coupa's Business Expenditure Management (BSM) platform gives everyone in any organization, including power users and suppliers, the ability to manage all of their business spendings in one location. 

 

The platform acts as a hub, connecting customers to hundreds of markets, CoupaLink technology partners, payment providers, their own IT infrastructure, and more.

 

4. Cockroach Labs:

 

Although the name seems weird, Cockroach lab is one of the highest funded SaaS companies of 2021. It's a software firm that creates a cloud-native SQL database for current cloud apps. 

 

Benchmark, G/V, Index Ventures, and Redpoint have all invested in Cockroach Labs, which was created by a group of engineers focused on constructing cutting-edge systems infrastructure. 

 

Although it was founded in 2015, it has already received a SERIES E funding of $355 million and has a five-year search growth of 1825%. 

 

5. Adobe:

 

Adobe has gone all-in on subscriptions, stating in 2013 that it would no longer produce new versions of its standalone creative tools in favor of selling subscriptions. It is a SaaS designed for designers. 

 

The total revenue of Adobe Creative Cloud from 2018 to 2020 may be viewed on their website. If you're not interested in looking at the numbers, Adobe Creative Cloud made $5.34 billion in 2018, $6.48 billion in 2019, and $7.74 billion in 2020. 

 

When the official figures are released, we should expect to see a figure for 2022 that is quite close to $10 billion. Adobe Inc. is a global software corporation with a wide range of products. Digital Media, Digital Experience, and Publishing and Advertising are the three segments through which it works.

 

Also Read | Latest SaaS products of 2022

 

6. Alphabet:

 

In the United States, Europe, the Middle East, Africa, Asia-Pacific, Canada, and Latin America, Alphabet Inc.’s subsidiary Google provides internet advertising services. The firm specializes in performance and brand advertising. 

 

Today, we'll be concentrating on the company's Google Cloud platform. Organizations and consumers alike can use Google Cloud to obtain a comprehensive set of cloud computing services. 

 

Alphabet is a NASDAQ-listed company with a trailing 12-month revenue of about USD$257.6 billion and 156,500 employees. In the most recent quarter, Google Cloud generated $4.99 billion in revenue. This represents a strong 44.8 percent gain year over year. In general, Google Cloud contributes a lot to the SaaS stage. Some investors may be contemplating GOOGL stock now if they want to bet on a top SaaS stock.

 

7. Twilio

 

Another SaaS firm to keep an eye on is Twilio. Twilio provides a robust API that is optimized for phone services, allowing businesses to make and receive phone calls as well as text messages. 

 

With their abilities and ability, any coder may quickly incorporate numerous communication methods such as video calls and address communication challenges. It's a cloud communication platform that lets developers integrate features like phone, VoIP, and messaging into their web, desktop, and mobile products. 

 

Twilio recently stated that they have "revenue of $668.9 million for the second quarter of 2022, up 67 percent year-over-year, including $46.6 million from Twilio Segment," and that they have "revenue of $668.9 million for the second quarter of 2022, up 67 percent year-over-year, including $46.6 million from Twilio Segment."

 

Also Read | Network as a Service (NaaS)

 

8. Smartsheet Inc.:

 

Smartsheet Inc., is a cloud-based project management software firm that provides workflow automation, collaborative capabilities, chat software interfaces, service request handling, content management, and more to help small and large businesses manage their processes. 

 

The Software-as-a-Service (SaaS) Showplace is part of THINKstrategies' newly expanded Cloud Computing Showplace, which is the largest vendor-independent online directory and best practice resource center for SaaS, Platform-as-a-Service (PaaS), and Infrastructure-as-a-Service (IaaS) solutions, including Managed Services. It's revenue increased by 37% year over year to $117.08 million. The adjusted loss per share was $0.09, exceeding expectations by $0.05. During that time, subscription revenue increased by 40%.

 

9. Microsoft:

 

Microsoft does not require an introduction. Microsoft, being one of the first SaaS firms, offers a variety of products to suit your needs. Microsoft 365 — formerly known as Office 365 – is the most well-known nowadays. 

 

The growth of non-Windows mobile devices, as well as competition from Alphabet, put Microsoft's dominance to the test. For nearly 45 years, it has controlled the market. 

 

Microsoft isn't a pure-play SaaS provider, and its stock has historically been overvalued in comparison to earnings. However, the corporation has been able to preserve its market dominance by effectively transitioning to selling subscription-based software. Microsoft officially said that sales from Microsoft 365-related goods and cloud services climbed by $3.1 billion, or 12%. 

 

Microsoft Corporation is a NASDAQ-listed company with a trailing 12-month revenue of roughly USD184.9 billion and 181,000 employees. You can do the Math.

 

Also Read | Backend-as-a-service (BaaS)

 

10. Grammarly:

 

Grammarly, If you do a lot of writing or deal with long written content, you should be aware of this. When it comes to the company's revenue, the company has remained tight-lipped. 

 

However, research indicates that the corporation is making around $70 million. Grammarly helps individuals create grammatically correct material in a variety of scenarios, including emails, web pages, whitepapers, and more. Grammarly improves readability, word choice, and style through suggestions and alerts based on AI technology and NLP (natural language processing) tools. It has been having a great time in the market with about 6.9 Million daily active users. 

 

Summing Up:

 

SaaS services are always expanding and grabbing new market sectors, providing consumers with cutting-edge technology and valuable features. The pandemic's boost to subscription-based software will spawn plenty of winners in the SaaS business, but neglecting valuation is a formula for disappointment. 

 

While it is possible to benefit from SaaS stocks, keep in mind that they, like any other investment, are not without risk. Because these companies are prone to market and software-as-a-service sector fluctuations, you should carefully examine your options before investing.