These three technological businesses have the potential to grow significantly and yield 10X returns by 2032. Every company employs unique tactics to guarantee sustained growth in sales and profitability, even in the face of market obstacles.
The first one’s growth trajectory is supported by its robust financial performance, reflected in the quarterly cash flow and profitability records. An emphasis on client acquisition and retention and a successful upselling strategy within its current customer base support this performance.
Similarly, the second one capitalizes on its large user base, especially the lucrative monetization of its game browser. The firm has achieved outstanding annualized average revenue per user (ARPU) growth due to its tailored strategy towards high-ARPU areas and consumers.
Lastly, the third one demonstrates growth and robust financial stability with a noteworthy profit turnaround and expanding clientele, suggesting a solid basis for further expansion. Overall, as shown by a robust net revenue retention rate, their strategy of focusing on upselling and cross-selling to current clients further generates revenue. Because of their steady performance, these businesses are good options for long-term profits in the technology industry.
Okta (OKTA)
In Q4 fiscal 2024, Okta (NASDAQ:OKTA) delivered a high uplift to its bottom line and cash flow. The company’s $129 million in non-GAAP operating profits, or 21% of total revenue, proves this. Okta also derived a record operational cash flow of $174 million in the same quarter and a free cash flow of $166 million. Similarly, with a 19% year-over-year (YoY) rise in sales to $605 million in Q4 2024, Okta saw solid top-line growth.
In the same quarter, subscription revenue reached $591 million, up 20% from the previous year. Okta’s revenue demonstrated resilience in the face of external problems, as seen by its steady growth patterns and stability despite setbacks in the macro environment. Additionally, in Q4, Okta attracted 150 new customers, proving that it can grow its clientele despite market headwinds. Hence, this expansion shows that Okta’s goods and services are well-received in the market and help the company’s revenue rise.
Finally, the sequential drop in acquiring new customers indicates Okta’s purposeful focus on generating income from upsells. Therefore, this reflects the company’s strategic move towards upselling within its existing client base, and this approach fits Okta’s objective of optimizing income from its wide range of clients.
Opera (OPRA)
Opera’s (NASDAQ:OPRA) user base is key to the company’s revenue growth. The corporation wisely manages low-monetization areas and concentrates on drawing in high-value customers. In Q1 2024, Opera had 304 million monthly active users (MAUs). The company’s fundamental capacity to draw in and hold on to a sizable user base signifies the moat of its brand and the edge of its offerings.
Additionally, Opera’s user growth strategy prioritizes quality over quantity and focuses on high-ARPU markets and consumers. Specifically, Q1 saw an astounding 24% YoY gain in the annualized ARPU, which reached $1.34. Hence, this expansion is a result of Opera’s successful monetization of its user base.
Moreover, the gaming browser Opera GX is a vital source of revenue. Opera GX has excellent user engagement and revenue potential, with 29.5 million MAUs and a 6.1% rise in users against Q4 2023. In Q1, Opera GX’s ARPU increased by 10% to $3.49 from Q1 2023. With $101.9 million in sales for Q1, Opera saw a 17% YoY rise in revenue. To sum up, the company’s excellent market position and efficient revenue generation tactics are reflected in its robust growth rate.
Intapp (INTA)
Intapp (NASDAQ:INTA) delivered a solid non-GAAP operating lead of $11.2 million profit in Q3 2024. This is a considerable improvement over the $2.9 million (profit) in Q3 2023. With that, the GAAP operating result in Q3 2024 was $7.4 million in loss, which improved against $18.2 million in Q3 2023.
Moreover, non-GAAP net income grew from $2.2 million in Q3 2023 to $11.2 million in Q3 2024. At the bottom, non-GAAP diluted EPS was $0.03 in Q3 2023. However, it was $0.14 in Q3 2024. These progressive metrics mark Intapp’s progressive profitability and expanding operational edge. They provide a solid financial basis for the company’s long-term expansion.
Finally, as of March 2024, Intapp was servicing over 2,450 clients as it continued to expand its clientele. More than $100K in ARR was contracted with 673 clients, suggesting a sizable percentage of high-value clients. Upselling and cross-selling to current customers helped Intapp achieve a trailing twelve-month net revenue retention rate of 115%. This was within the guided range of 113%-117%. Overall, this demonstrates the business’s fundamental capacity to extend its reach through upselling and cross-selling strategies.
On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
