Although we might all be familiar with FAANG or Meta (FB), Amazon (AMZN), Apple (AAPL), Netflix (NFLX), and Alphabet (GOOG), we’ll be taking a deep dive into the best performing software as service companies and breaking down why they’re currently the best in the industry. We’ll also cover how to apply these in your own business and the top 3 SaaS startups to look out for in 2022.
Here are the top 10 software as service companies and some rising giants we recommend you keep a close eye on.
What is SaaS and what are its benefits?
At its core, SaaS represents Software as a Service. It’s anything from a CAD program to a video editing platform. What makes them unique? There isn’t a need for any material assets as the licensing program and service stay in the cloud.
You may be wondering how it’s modeled and what makes it so successful. While Software as Services are relatively simple to subscribe to, however that ease of access also leaves room for heavy churn rates. An authentic and honest service will tend to grow over time. Establishing a solid foundation of open communication with your customers and their needs may increase your product’s retention rate. Overall, successful services make it easy for their customers to interact with and return to.
Where is SaaS going?
With Software as Service becoming rapidly more prominent over the years, current statistics display it only growing from here. With an average annual growth rate of 18%, it’s safe to say that the global SaaS market is rising over six times quicker than the overall economy.
Top 10 SaaS Companies in 2022
Being one of the most influential pioneers within the SaaS field, Adobe has been offering creatives around the world the platforms to hone their craft and share it with the world since December of 1982. Founded by Charles Geschke and John Warnock in San Jose, CA, Adobe was publicly released in 2013 and has proven itself as a staple in the cloud ever since. Their service provides creative tools for anyone from hobbyists to professionals.
With Photoshop being the flagship product within their line, the platform has gifted creatives with the opportunity to pave their own lane. Offering innovative features like layering, filtering, and grouping to name a few; Adobe has remained the industry standard for over a decade and is still on the incline. With a market cap nearing $190 Billion, they are the highest performing SaaS company in 2022.
Offering customer services and sales tools since the beginning of SaaS, Salesforce has been steps ahead of the competition for a long time coming. For one, their mobile compatibility is unrivaled. Offering features such as workflow creation, analytics, collaboration, and engagement tools, Salesforce allows for a more user-friendly experience. Whether you’re one of the larger clients or just an average customer, Salesforce operates under a unified platform. This allows for a synchronized infrastructure and fluid integration of upgrades and updates. Started by Parker Harris and Marc Benloff in 1999, Salesforce has grown into one of the industry’s most stable SaaS companies holding a market cap of $158.7 Billion. Overall a well-grounded investment trusted by more than 150,000 customers.
As a company that operates through values, Intuit has developed their platforms into some of the most secure financial softwares available on the web. Offering online business management services, payroll systems, and company financing, their platforms provide crucial support for major financial challenges. Their product line consists of Mint, an application built for personal finance, Mailchimp for marketing via email, Credit Karma, monitoring users’ credit score, Quickbooks, a small business accounting software, and TurboTax to aid with filing taxes. Founded in 1983 by Scott Cook and Tom Proulx, the company has been rapidly growing since the ’80s and now has $15.52 Billion in total assets.
Created with productivity and workflow in mind. Service Now provides prebuilt templates and coding tools with ease of use experiences when developing their own craft. Whether that be IT, building apps, or creating a platform of their own, their services are built to empower the average citizen, those who may not be the most proficient with coding, the opportunity to compose a program to fit their needs. Specializing in customer experience, Service Now promotes the production of new digital platforms. With a history dating back to 2003, Fred Luddy built one of the most influential and innovative IT SaaS companies. Currently holding a net income of $230 million and a market cap of $86.8 Billion, Service Now has climbed its way to rank 83 on the Fortune 100 list.
Formerly Square Inc, Block is a digital payments and financial services company located in San Francisco, CA. Realized by Jim McKelvey, and Jack Dorsey in 2009 and launched in 2010, Block now consists of Square, Spiral, Tidal, Cash App, and TBD54566975. All of which are financial tools that benefit users worldwide. Growing from a market cap of $5.5 billion in 2017 to $48.4 Billion as of today, Block Inc remains one of the leading personal financial platforms.
Shopify’s mission statement is to “make commerce better for everyone, so businesses can focus on what they do best: building and selling their products.” Shopify promotes the creation and growth of online businesses. Shopify aims to simplify the process for flipping and selling products online. Providing a platform for both small businesses and the average vendor to promote and sell their products. With a similar concept to online sites like Craigslist or Offerup, the key factor that sets Shopify apart is their ease of use and customer flexibility. Shopify users also have the ability to sell as many products as they wish as there are no limits on the amount of items that could be sold. Developed in 2004 by Daniel Weinand, Tobias Lutke, and Scott Lake, Shopify has elevated the E-commerce market with their unlimited bandwidth and online storage. Carrying a market cap of $45.7 billion, they are the highest valued E-commerce platform available.
Currently, with a market value of $190.57, Atlassian is a global software whose main goal is to aid software development teams with the development, design, and maintenance of platforms and systems. 20 years prior, Atlassian began in New South Wales as an authentic company with a flexible mission statement in mind. While in college Mike Cannon-Brookes and Scott Farquhar set out on a goal to create Jira 1.0, the first installment of Atlassian in 2002. With a current stock market cap of $44.8 billion, the company has grown into a prominent solution for software teams around the globe.
A SaaS that provides the processing and storage of data and analytic solutions at an accelerated rate. With the platform based in the cloud, Snowflake allows users to clone tables, and databases rapidly thus assisting the organization and mobilization of large-scale data. Snowlake is another program to consider looking into, reaching $43.4 Billion in market cap this year.
Founded in 2005 by Aneel Bhusi and Dave Duffild, Workday operates within their own class of enterprise management cloud. Specializing in financial management applications, Workday sets itself apart from their competition with their modern mobile interface. With a market value of $42.1 billion, they have established themselves as another high-performing SaaS.
Known for some of the most renowned CAD software such as Audodesk Inventor, this service allows users to create their own interpretation of 3D modeling and objects. With a plethora of features and tools, developers take what they are imagining, produce it through software and eventually produce a 3D printout of their creations. Being one of the most innovative platforms to date, Autodesk remains a pioneer within the AutoCAD industry with a market cap of 41.6
Here’s the Top 20 SaaS Companies at a Glance
The Data Below is Based on the U.S. Stock Exchange:
Photo Provided By: Mikesonders.com
We’re also seeing a trend with how more firms and individuals are accepting Bitcoin, or BTC for short, due to the trust-based foundation that our centralized currency relies on. Created by Satoshi Nakamoto, he explains how this may be the new payment system of the future in his cryptowiki white paper about the Peer-to-Peer Electronic Cash System.
Keep an eye out for:
Though the current top ten companies have established themselves and their value over the years, here are some up-and-comers worth checking out as well.
Flow XO, a chatbot platform, Craft CMS, for content management and web projects, and finally Intrepid Finance for financial business solutions.
When creating your own SaaS business keep the customers’ satisfaction, ease of use, and service in mind. A common theme among the top-performing Software as a Service platforms has been innovation and excitement. Creating software that the user enjoys is key to developing a lasting service.