These are the 3 public tech companies with the fastest accelerating revenues
As the coronavirus pandemic hit the financial markets, the MAGAs and FAANGs of this world — acronyms for the largest tech companies — have been presenting themselves more and more as the new blue-chip stocks. While most public companies are still deep in the red, they’ve been able to rebound, with some of them even nearing all-time highs again.
It shows that the digital economy is more important than ever. But while these juggernauts are absorbing most of the investment savvy people and financial media’s attention, there’s an undercurrent of tech companies that aren’t worth a trillion dollars yet. And some of those companies’ revenues are accelerating much faster than those of the tech giants.
That’s because of their current size; they’re worth between $10 and $25 billion, which means they relatively have more room to grow. They’re much nearer the beginning stages of their development, and are much more focused on serving one particular, growing need.
So, which are these companies whose revenues are not only absolutely growing faster each year, but also percentage-wise? In other words, what are the tech companies that are relatively growing the quickest?
Before we reveal these three companies to you, do note that none of them are making a profit yet. They’re all heavily investing in their product and team, to facilitate further growth.
Zscaler is a globally operating cloud security company worth $10B.
Zscaler has seen its annual revenue grow from $80M to $302M in the span of four years. Absolutely, they saw year-over-year growth — between each of those four years — of respectively $45M, $64M, and $113M in revenues. Going from $45M to $64M in annual revenue growth is a 42% acceleration. Going from $64M to $113M in annual revenue growth is a 75% acceleration. This means Zscaler has seen not just its revenue grow significantly, but also the acceleration of its growth.
DocuSign is also a cloud-based software company, and offers digital signature solutions to businesses worldwide, enabling digital agreements. It’s currently worth $23B.
DocuSign has seen its annual revenue grow from $381M to $974M in the span of four years. Absolutely, they saw year-over-year growth — between each of those four years — of respectively $137M, $182M, and $273M in revenues. Going from $137M to $182M in annual revenue growth is a 33% acceleration. Going from $182M to $273M in annual revenue growth is a 50% acceleration. This means DocuSign has also seen not just its revenue grow significantly, but also an acceleration of its growth. Slightly ‘slower’ than Zscaler, but still very impressive.
Another cloud-based company, Cloudflare manages data centers around the world to improve its clients’ site performance and loading times, and provides defenses against cybersecurity threats. It’s currently worth $9B.
Cloudflare has seen its annual revenue grow from $85M to $287M in the span of four years. Absolutely, they saw year-over-year growth — between each of those four years — of respectively $50M, $58M, and $94M in revenues. Going from $50M to $58M in annual revenue growth is a 15% acceleration. Going from $58M to $94M in annual revenue growth is a 63% acceleration. Cloudflare’s yearly acceleration diverged a bit more than that of DocuSign, but on average has been almost on par.
Perhaps unsurprisingly, all of these three companies are business-facing, and they are all offering cloud solutions. They’re the so-called SaaS (software as a service) companies, and are helping the economy transition into an ever more digital one.
Published May 18, 2020 — 15:08 UTC