SaaS (short for “software as a service”) companies deliver software applications over the internet, typically as a subscription.
An example of such a company is Adobe (NASDAQ: ADBE), which transitioned from selling software via the old-school CD-ROMs to delivering its products online.
The advantage of having a SaaS business model for companies is that there’s a recurring revenue element, and companies can better predict their cash flows.
For the consumer, instead of having to fork out lots of money up front to purchase a product, the cost is now broken down into more sizeable bits.
Win-win.
The SaaS industry is still in its early innings, and there’s still much more room for growth.
One data shows that the market is expected to reach US$436.9 billion in 2025, growing at a compound annual growth rate (CAGR) of 12.5%.
List of SaaS Stocks
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