SaaS Stocks Continue Winning Streak
After a depressing 2008, software as a service stocks continue to rally in 2009. The latest example: Our SaaS 20 Stock Index rose 3.45 percent for the week ending April 10, and the index is up 8.68 percent since the start of 2009. Here’s a quick look at the SaaS industry’s year-to-date winners and losers.
- Websense, the security software provider, delivered quarterly results that beat Wall Street’s expectations.
- Concur shares received an upgrade, and the company’s expense management software continues to gain momentum. When the company announced results Feb. 4, Concur said Q1 revenue was up 19 percent compared to Q1 2008, and net income rose to $5.8 million — up from $3.4 million in Q1 2008.
- Constant Contact, meanwhile, will announce first quarter results on May 7. The email marketing company grew its revenue 73 percent in 2008 to $87.3 million and substantially cut its annual loss to $2.1 million.
- For its part, Kenexa announced a partnership with R&J Management Consultants. The deal pushes Kenexa’s talent management software into China.
The SaaS 20 Stock Index’s two biggest weekly losers Omniture Inc. (OMTR, -4.31%) and NetSuite (N, -3.99%). Although one research firm upgraded Omniture shares on April 7, two other firms downgraded the company.
Overall, SaaS stocks are riding the broader stock market recovery wave. The S.& P. 500 has now risen more than 25 percent since stocks bottomed out on March 9, one of its best runs since the Great Depression, according to The New York Times.