SaaS Trends To Watch In 2021 - Scott Storkamp
Investors searching for the next big opportunity are wise to consider SaaS-based companies. These business models are well-positioned for explosive growth as individuals and companies are exploring innovative solutions to address problems or issues they’ve experienced, particularly in the past year.
Given that the pandemic has changed our world, it is no surprise that Zoom was a fast-growing company from 2020 to 2021. The highest end of the company’s sales guidance expects a 330% increase in January 2021 from 1 year ago.
Other SAAS-based companies that experienced significant growth include:
Spotify — The popular music streaming service experienced a 120% increase in sales from 2020 to 2021.
Netflix — With theaters and most other entertainment venues shuttered, streaming video content services, including Netflix, were a savior for many. The company saw an increase of 77% in sales from 2020 to 2021.
Airbnb — Despite the economic downturn, Airbnb experienced growth with increased revenue up by 56%.
HubSpot — HubSpot offers software products specializing in customer service, inbound marketing, and sales. As companies and organizations scrambled to meet the changing business environment, HubSpot saw a staggering increase of 191% in sales from 2020 to 2021.
Other potential movers and shakers in the tech space include Micro SAAS companies. Micro SAAS is a new model for non-capital intensive businesses and can get scaled easily with a mobile, app, or digital presence.
Unlike more established SAAS models, Micro SAAS are more niche players. Often, the application is responsible for completing a limited number of tasks. For instance, quickly and easily building single-page websites, making updates to social media platforms, or other types of core functionality.
What’s the future of SAAS? While I feel it’s very likely to be a blue sky country for those with significant momentum and demand behind them, it will ultimately depend on how fluid these companies adapt to the changing business environment.
Having followed technology stocks for much of my career, I have confidence in the sector.
Companies like Apple and Google have shown time and again how to build large businesses with an expansive portfolio of products. While it’s still very early in the evolution of this industry, I’m confident we’ll see many more examples where the sustainable value makes itself apparent to all who utilize it for personal or professional purposes.
Click here to read more about how SAAS is shaking up the technology sector.
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A recognized financial analyst, Scott Storkamp has spent over 30 years in the industry and has gathered a deep knowledge of wealth management. A strategic opportunist, his experience in Military Intelligence with the US Army Special Forces, PhD-level Quant knowledge, advanced coding, and AI modeling expertise have all been great assets in his professional career. Scott utilizes strategy, logic, and risk assessment to evaluate and seize market opportunities as they become available.
