Investors seeking alternatives may wish to explore purchasing stocks in firms that generate money from other sources, such as enterprises. Those that provide software geared to increase a company’s operational efficiency have an edge since conserving money and increasing sales is a significant objective for businesses right now.
Here Are Two Software Stocks That Should Be at the Top of Any Investor’s List.
Workiva (NYSE:WK ) and Bill.com (NYSE:BILL) suit the bill. Each company’s share price is down between 53% and 63% from its all-time high, owing mostly to the overall market’s turn against tech stocks in 2022.
1. BILL Stock: Bill.com wants to do away with the paper trail.
Bill.com’s main cloud-based platform enables companies to receive or upload invoices to a single digital inbox, where they may pay with a single click. The transactions are instantly synced with their accounting software. Business clients may also send invoices and monitor incoming customer payments, owing to its purchase of Invoice2go last year.
Bill.com has over 400,000 companies as clients across all of its platforms at the end of fiscal 2022 (June 30). The company’s revenue increased by 169% in the fiscal year to $642 million, and it intends to increase by up to 52% in fiscal 2023, with sales potentially exceeding $973 million. It’s currently losing money, but considering how rapidly it’s expanding shouldn’t worry investors.
Investors should be most excited about the long term. Bill.com predicts that its worldwide potential in payment volume from more than 70 million small to medium-sized enterprises may surpass $125 trillion per year. Because the firm derives most of its income from transaction volume on its platforms, acquiring a more significant part of the market might imply the company’s remarkable growth will continue indefinitely.
2. Workiva Stock: Workiva is aiming toward the ESG revolution.
What precisely is ESG? It stands for environmental, social, and governance. It offers a framework to assist firms in evaluating their operations in a manner that goes beyond merely financial performance and demonstrates their larger influence on the world around them. Workiva (NYSE: WK) believes that assisting businesses in meeting ESG criteria is its firm’s next significant growth potential. It currently assists businesses in data management, so expanding into ESG monitoring and reporting seems natural.
Workiva management expects the firm to produce $535 million in sales in 2022, a 20% increase over 2021. However, the proportion of its clients who spend the most money is growing even faster. Those spending $300,000 or more yearly with Workiva increased by 22% in the second quarter of 2022 (ended June 30), while those spending $150,000 or more increased by 28%.
These data demonstrate the importance of Workiva’s platform in big businesses, which are often more complicated. ESG indicators are the next frontier, and the corporation claims it is spending hard to strengthen its services in this area.
Featured Image- Megapixl @ Michaelvi
Author Okoro Chinedu 
