SaaS, or Software as a Service, is a fairly new and unique classification of the much broader technology industry. The companies’ business models rely on providing a subscription type arrangement for its software, instead of the more traditional approach of just selling its software. This business model has one main difference – recurring revenue, as well as a low upfront cost to the consumer, a previous pain point. With that in mind, the stocks on our list are SaaS companies with already attained paying clients.
CounterPath Corp. (TSX: CCV) – $0.59
Software
CounterPath Corporation designs, develops and sells software and services that enable enterprises and telecommunication service providers to deliver Unified Communications (UC) services, including voice, video, messaging and collaboration functionality, over their Internet Protocol (IP) based networks. The Company is engaged in the design, development, marketing and sale of personal computer and mobile application software, gateway server software and related professional services, such as pre and post sales, technical support and customization services. It also offers a cloud-based solution to businesses known as Bria SaaS.
- Market Cap: $24,984,096
- Revenue (2014): $14,493,719
- EV/Revenue: 1.47x
- Cash and Short Term Investments: $3,444,297
Descartes Systems Group Inc. (TSX: DSG) -$22.16
Software
Descartes Systems Group Inc. (Descartes) is a global provider of on-demand, cloud-based software-as-a-service (SaaS) solutions. The Company is focused on logistics and supply chain management business processes. Customers use its modular, SaaS solutions to route, schedule, track and measure delivery resources; plan, allocate and execute shipments; rate, audit and pay transportation invoices; file customs and security documents for imports and exports; research and perform trade tariff and duty calculations and complete other logistics processes. The Company’s primary focus is on serving transportation providers, including air, ocean and truck modes; logistics service providers, including third-party logistics providers, freight forwarders and customs brokers, and distribution-intensive companies.
- Market Cap: $1,686,680,991
- Revenue (2014): $217,504,780
- EV/Revenue: 6.98x
- Cash and Short Term Investments: $150,281,469
iSIGN Media Solutions Inc. (TSX: ISD) – $0.17
Advertising & Marketing
ISIGN Media Solutions Inc. is a Canada-based data-focused, software-as-a-service (SaaS) company. The Company owns and services the digital signage network with 6,000 digital screens in Canada and the U.S., servicing more than 1,400 locations. It also provides solutions, delivering media, messages, free of charge to mobile phones using Bluetooth and Wi-Fi connectivity.
- Market Cap: $18,748,630
- Revenue (2014): $615,350
- EV/Revenue: 30.48x
- Cash and Short Term Investments: $133,800
3TL Technologies Corp. (TSXV: TTM) – $0.155
Software
3TL Technologies Corp., formerly KCO Capital Corp., is a Canada-based digital media marketing technology company. Its product, Platform³, is a cloud-based, Software as a Service (SaaS) model available as an enterprise class solution or in site licenses. Platform³ is a consumer-to-consumer content marketing, data mining, loyalty and rewards platform used by brands to engage consumers on the Web or mobile phone through digital and social channels. Platform³ enables brands to facilitate the distribution of relevant brand content through friend-to-friend sharing via social media. Platform³ collects and analyzes data to determine which consumers are valuable to a brand based on their level of social media brand engagement.
- Market Cap: $13,076,094
- Revenue (2014): $310,250
- EV/Revenue: 38.48x
- Cash and Short Term Investments: $1,923,150
