Strong Quarterly Earnings Lift SaaS Stocks

Strong quarterly earnings from multiple Software as a Service (SaaS) stocks lifted our SaaS 20 Stock Index 5.7% for the week ended May 1. Winners beat losers, 17 to 3 -- as investors sharply bid shares up at Athenahealth Inc., Concur Technologies Inc., SuccessFactors Inc., NetSuite Inc. and Ingram Micro Inc. Here's a closer look at the weekly SaaS winners and losers.

Let's start with the SaaS 20 Stock Index weekly winners:

Athenahealth Inc. (ATHN, +18.40% for the week): The company, which develops online services for medical groups, saw its shares rise steadily throughout the week ahead of an April 30 earnings announcement. And the earnings announcement itself was reasonably strong. First-quarter profits rose 28 percent -- meeting Wall Street's expectations -- and quarterly revenue rose 41 percent to $42.1 million, noted the Associated Press.

Concur Technologies Inc. (CNQR, +17.03%): Concur also delivered strong quarterly results. The company, which devlops employee spend management services, said Q1 revenue jumped 16 percent to $62 million, and quarterly earnings jumped 82 percent, according to a company press release.

SuccessFactors Inc. (SFSF, +15.95%): Like many of its SaaS peers, SuccessFacors delivered strong quarterly results. Quarterly revenue at the talent management software provider jumped 50 percent, and other financial metrics improved sharply.

NetSuite Inc. (N, +14.51%): Investors seem optimistic that NetSuite will deliver strong Q1 results when the company discloses financials after the market close on Monday, May 1.

Ingram Micro (IM, +14.51%): Although Ingram Micro's profits declined 57 percent in Q1, the results still beat analyst expectations. Although Ingram Micro does not break out results for the company's Seismic managed services business, VP Justin Crotty says Seismic remains on plan with its goals and has been adding 35 to 50 new MSPs to the Seismic platform per month. Crotty and the Seismic team are hosting a partner event May 4-6 in Dallas.

The week's only major loser was Constant Contact (CTCT, -14.29%). Investors apparently bid down the shares based on anticipated competition from VistaPrint. Constant Contact is expected to announce quarterly results on May 7.

The Bottom Line

For the year to date, our SaaS 20 Stock Index has performed strongly, rising 14.45% from January through May 1.

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