As companies continue with the remote working structures, with many adopting cloud platforms as part of their digital transformation efforts, the software-as-a-service (SaaS) industry should grow solidly. We think SaaS stocks QAD (NASDAQ:QADA), and Absolute Software (ABST) are well-positioned to cash in on the industry tailwinds. Conversely, their declining financials could leave Workiva (NYSE:WK) and Paycor HCM (PYCR) in jeopardy of a downturn in the near term. Let’s discuss.The heightened demand for cloud-based applications that facilitate remote working and increase the efficiency of business processes is driving the software-as-a-service (SaaS) industry’s growth. Because companies have been delaying their office reopening plans owing to the resurgence of COVID-19 cases, companies that provide SaaS should continue thriving.
The global SaaS market is expected to grow at a 12.5% CAGR to $436.9 billion by 2025.
However, not all companies in this space are well-positioned to capitalize on the industry tailwinds. Efficient operations and strong financials should help QAD Inc. (QADA) and Absolute Software Corporation (ABST) soar in price in the coming months. In contrast , we think their declining financials could cause Workiva Inc . (WK) and Paycor HCM, Inc. (PYCR) to witness a downtrend in the near term.