ADBE to CRM: Five top SaaS stocks to explore in June

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 ADBE to CRM: Five top SaaS stocks to explore in June
Image source: © Wrightstudio | Megapixl.com
Highlights:
  • Snowflake Inc. (NYSE: SNOW) revenue rose 85% YoY in Q1, FY23.
  • Adobe Inc. (NASDAQ: ADBE) expects total revenue to be around US$4.34 billion in the second quarter of fiscal 2022.
  • Salesforce, Inc. (NYSE: CRM) expects fiscal 2023 revenue to be between US$31.7 billion and US$31.8 billion.

Many software firms have turned their business into a software-as-a-service (SaaS) model. SaaS companies saw robust growth over the past year. It is one of the most happening segments in the technology sector today. These firms provide regular software updates to clients. Here we explore some of the top SaaS stocks that may continue to make headlines in the coming months.

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Snowflake Inc. (NYSE: SNOW)

Snowflake is a cloud data platform. It provides clients with consolidated data to drive their businesses. The company is based in Bozeman, Montana.

Its shares traded at US$139.70 at 2:09 pm ET on June 2, up 10.74% from their previous close. The value decreased by 62% YTD.

Snowflake’s market cap is US$44.19 billion, and the forward one-year P/E ratio is -59.50. The EPS is US$-2.11. The 52-week highest and lowest stock prices were US$405.00 and US$112.10, respectively. And its trading volume was 12,114,960 on June 1.

The company reported revenue of US$422.4 million in Q1, FY23, up 85% YoY. Its product revenue rose 84% YoY to US$394.4 million. The net loss came in at US$165.79 million, or US$0.53 per share, against a loss of US$203.22 million, or US$0.70 per share, in Q1, FY22.

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ADBE to CRM: Five top SaaS stocks to explore in JuneSource: Pixabay

Adobe Inc. (NASDAQ: ADBE)

Adobe is one of the leading technology companies based in San Jose, California. It provides a diversified portfolio of products and services to professionals like app developers and enterprises.

The stock traded at US$440.97 at 2:14 pm ET on June 2, up 5.45% from its previous close. The ADBE stock fell 25.91% YTD.

Its market cap is US$207.58 billion, the P/E ratio is 43.63, and the forward one-year P/E ratio is 37.71. Its EPS is US$10.07. The stock touched a peak price of US$699.54 and the lowest price of US$370.27 in the last 52 weeks. Its share volume on June 1 was 3,409,856.

The company posted a revenue of US$4.26 billion in the first quarter of fiscal 2022, up 9% YoY. Its net income came in at US$1.266 billion, or US$2.66 per diluted share, compared to US$1.261 billion, or US$2.61 per diluted share in Q1, FY21.

The company now expects total revenue of around US$4.34 billion and a GAAP EPS of US$2.44 in the second quarter of fiscal 2022.

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Cloudflare, Inc. (NYSE: NET)

Cloudflare is a content delivery and DDoS mitigation firm based in San Francisco, California. It runs a reverse proxy between the web visitors and the hosting providers.

Its shares traded at US$58.775 at 2:20 pm ET on June 2, up 6.65% from their previous close. Its stock value declined 56.32% YTD.

The firm has a market cap of US$19.39 billion and a forward one-year P/E ratio of -134.41. Its EPS is US$-0.83. The 52-week highest and lowest stock prices were US$221.64 and US$50.03, respectively. Its trading volume was 4,100,362 on June 1.

Its revenue increased by 54% YoY to US$212.2 million in Q1, FY22. The net loss was US$41.38 million, or US$0.13 per share, against a loss of US$39.96 million, or US$0.13 per share in Q1, FY21.

Cloudflare now expects its revenue to be between US$226.5 million and US$227.5 million in the second quarter of fiscal 2022.

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Salesforce, Inc. (NYSE: CRM)

Salesforce is a cloud software firm offering customer relationship management (CRM) software and applications related to sales, customer services, etc. It is based in San Francisco, California.

The stock traded at US$189.83 at 2:40 pm ET on June 2, up 7.82% from its previous close. The CRM stock plummeted 31.08% YTD.

Its market cap is US$188.46 billion, the P/E ratio is 184.1, and the forward one-year P/E ratio is 84.65. Its EPS is US$1.03. The stock touched the highest price of US$311.75 and the lowest price of US$154.55 in the last 52 weeks. Its share volume on June 1 was 37,037,410.

The company posted a revenue of US$7.41 billion in Q1, FY23, an increase of 24% YoY. Its net income came in at US$28 million, or US$0.03 per diluted share, against an income of US$469 million, or US$0.50 per diluted share in Q1, FY22.

It now expects the fiscal 2023 revenue to be between US$31.7 billion and US$31.8 billion, representing an increase of 20% YoY.

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US SaaS stocks: SNOW, ADBE, NET, CRM, NOW,

ServiceNow, Inc. (NYSE: NOW)

ServiceNow is a software firm headquartered in Santa Clara, California. It provides a cloud computing platform to aid clients in managing digital workflows for their enterprise operations.

Its shares traded at US$508.405 at 2:47 pm ET on June 2, up 7% from their closing price of June 1. The stock value declined 24.6% YTD.

ServiceNow’s market cap is US$101.68 billion, the P/E ratio of 461.16, and the forward one-year P/E ratio is 274.64. Its EPS is US$1.10. The 52-week highest and lowest stock prices were US$707.60 and US$406.47, respectively. Its trading volume was 1,669,890 on June 1.

The company's total revenue increased by 27% YoY to US$1.72 billion in Q1, FY22, while its subscription revenue rose 26% YoY to US$1.63 billion.

Its net income came in at US$75 million, or US$0.37 per diluted share, against an income of US$82 million, or US$0.41 per diluted share in Q1, FY21.

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Bottom line:

The technology stocks declined sharply amid various macroeconomic concerns and market uncertainties this year. The S&P 500 information technology sector rose 1.16% over the past 12 months while falling 19.99% YTD. Hence, investors should evaluate the companies and the broader market closely before investing in stocks.

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