PagerDuty, Mimecast: Are Mid-Cap SaaS Stocks Still Attractive? --
Summary
Our theme on Mid-Cap SaaS Stocks includes software players that have shown strong revenue growth and consistent margin expansion and are trading at a market cap of under $10 billion. On the other hand, Mimecast (MIME), a company that sells cloud security and risk management services for email and corporate data, has underperformed, declining by about -22% year-to-date. Workiva (NYSE:WK) offers cloud-based solutions for enterprises to collaboratively collect, manage, report, and analyze business data in real-time across areas such as finance, accounting, and compliance. PagerDuty (NYSE:PD) provides a SaaS incident response platform for IT departments that helps teams detect and fix infrastructure problems quickly. While the company’s business could face some headwinds due to the tough economy and high unemployment rate, its fundamentals are strong, with revenue growing by about 25% annually over the last two years.
