According to IDC, small and mid-sized businesses (SMBs) are expected to spend approximately $65 billion in 2019 on software in the U.S. Bill.com, which recently went public, is a leading cloud-based financial software provider for back-office financial processes at SMBs. In its first quarter since going public in December, the company looks impressive.>>>
Cloud services security provider Qualys (Nasdaq: QLYS) recently announced its fourth-quarter results that failed to particularly impress the market. But the company is focusing on attracting the market through its product upgrades and tie-ups with the tech giants.>>>
Cloud-based communication services provider RingCentral (NYSE:RNG), which is one of our Top 20 Cloud Stocks for 2020, reported its fourth quarter results this week that blew past all market expectations, and its stock has soared to a record high post the announcement.>>>
According to IDC, the global cyber security market grew 9% to $103.1 billion in 2019 and is expected to grow at 9% CAGR to reach $133.8 billion by 2022. Recently, San Francisco-based Proofpoint (Nasdaq: PFPT) announced its fourth quarter results that surpassed market expectations.>>>
I have spent a decade already on One Million by One Million with the mission of helping a million entrepreneurs reach their first million in revenues.
The journey has led me down many corridors of technology.
The one that excites me the most is Platform-as-a-Service (PaaS).
Today, there are easily 200+ B-to-B SaaS companies out there, including 50+ public ones. The IPO market for cloud stocks is rich and we will see many others go public in due course. These are solid companies, nothing foo-foo about them.>>>
According to an Allied Market Research report, the global complaint management software market is expected to grow at 11% CAGR to reach $8.3 billion by 2026 from $1.93 billion in 2018. Zendesk (NYSE: ZEN), and India-based Freshworks are key players in the market. Zendesk recently announced its fourth quarter results that surpassed market expectations.>>>
Twilio (NYSE: TWLO) is a leading player in the Communications PaaS segment that made it to our list of Top 20 Cloud Stocks for 2020. It recently reported a strong quarter that beat estimates but its profitability outlook was disappointing.>>>
Under the leadership of its newest CEO Bill McDermott, ServiceNow (NYSE: NOW) recently reported a stellar quarter. The company outperformed market expectations for the quarter on all fronts, sending the stock soaring to a record high.>>>
Facebook’s (Nasdaq: FB) battle with privacy concerns are far from over. The company recently announced that it had settled a class action lawsuit by paying $550 million in fine, and it was also slapped with a $5 billion fine for privacy abuses by the Federal Trade Commission. Despite this, its quarterly results surpassed market expectations. Facebook is also looking at expanding its service offerings to e-commerce and payments to drive growth.>>>
In my recent post How PaaS Impacts The Stock Prices Of SaaS Companies, I mentioned an equation:
Some numbers: Let us say, a SaaS platform vendor succeeds in facilitating 100 small companies to achieve $10M in ARR each. That would add up to $1 billion ARR cumulative. 30% of this, or $300 million ARR comes back to the company as platform fees. This, conceivably, amounts to a $3 billion market cap enhancement for the PaaS vendor.
The reality often is somewhat different.