3 much-needed software stocks that are worth considering in the perspective of fourth-quarter earnings

Most renowned US equities in megacap technology have already reported their latest quarterly results. Some of the most closely followed, such as (NASDAQ :), (NASDAQ 🙂 and (NASDAQ 🙂 beat expectations.

In strong contrast, Google released older (NASDAQ 🙂 and (NASDAQ 🙂 less than excellent results, reducing their respective shares.

Although most media and investors focus on these big names, there are other stocks that deserve attention before their income is released.

Here are 3 companies from the software as a service sector (SaaS), which are expected to see continued revenue growth thanks to the robust demand for their products and services:

1. Zendesk: Reports February 6 after Market Close

Shares from Zendesk (NYSE 🙂 started the year well, as investors grow at the provider of customer relationship management solutions.

The company's flagship product, Zendesk Support, is a system for tracking, prioritizing and resolving customer support tickets through different channels. Another popular offering is Zendesk Chat, a live chat software that connects to customers on websites, applications and mobile devices.

The stock, which has risen by around 17% since January 1, compared to 5.5% gain, closed Tuesday on a six-month high of $ 89.52 with a market capitalization of $ 10 billion .

The Q4 results of the San Francisco-based customer service software producer are expected to have benefited from the growing demand and acceptance of the solutions for Zendesk Sunshine and Zendesk Suite solutions.

Consensus calls for earnings per share of $ 0.10 for the fourth quarter. Turnover is expected to increase 32% from the same period a year earlier to $ 227.58 million.

Apart from the top and bottom line figures, the update of Zendesk regarding the additions of its customers is closely monitored to see if it can maintain its high growth rate. At the end of the third quarter, the paid customer accounts were roughly 153,700, an increase of 4,700 yoy.

2. Shopify: February 12 reports before Market Open

Shopify (NYSE :), one of the biggest winners of 2019, has already seen its stock increase by 22% this year. Shares from the Canadian e-commerce software platform, which helps traders set up online stores and manage their brands, ended yesterday at a record high of $ 485.46 and a market capitalization of $ 56 billion.

Consensus calls for Shopify earnings per share for the fourth quarter to be $ 0.23. Turnover is expected to rise 40% from the same period a year earlier to $ 481.93 million.

Sales growth in Shopify's Merify Solutions and Subscription Solutions segments will be carefully examined after increasing by 50% and 37% year-on-year in the third quarter, respectively. Taking advantage of the rising popularity of e-commerce, Shopify has enjoyed its payment network.

Other developments in focus include details regarding the e-commerce company's execution network, which could help its traders compete more effectively with Amazon.

3. Trade desk: reports February 20 after market closure

Trade Desk (NASDAQ :), has seen shares last year, so far increasing by 17% in 2020.

Investors remain optimistic about the digital advertising purchasing specialist, who manages a self-service software platform where customers can purchase and manage data-driven digital advertising campaigns.

The stock benefited from a fast-growing wave of digital ad purchases last night at a record high of $ 303.13 with a market capitalization of $ 13.7 billion .

Fourth quarter earnings per share in Ventura, California, are expected to increase by 7% compared to the same period last year to $ 1.17, while revenue is expected to increase by 33% to $ 213.42 million.

Investors would like to see if the online advertising provider continues to see explosive growth in its connected TV and audio markets, which rose 145% and 160% yoy respectively in the third quarter. It is expected that the performance of both segments will be boosted in the fourth quarter from new revenue growth sources as more streaming platforms enter the space.

Other areas of interest include management comments on online advertising opportunities presented by the Olympic Games this summer and the US presidential election in November.

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