Cloud software companies, particularly those operating under a software-as-a-service (SaaS) model, have transformed the way businesses deploy, scale, and manage digital tools.
From infrastructure and data platforms to collaboration and workflow management, cloud-native software providers deliver mission-critical solutions with recurring revenue models and strong margin profiles. Powerful business software once only sold to large corporations is now readily available to small and mid-sized enterprises. These solutions offer customers faster setups than on-premise software, with a lower upfront cost. At the same time, investors value the more predictable revenue streams that come with a SaaS model. Cloud-based software has proliferated “freemium” business models and “land and expand” sales strategies that allow software developers to scale up and grow alongside their customers.
IPO activity in this space has opened access to some of the most dynamic and high-growth enterprise technology companies. These businesses often benefit from viral user adoption, developer ecosystems, and strong customer retention fueled by subscription-based pricing.
Below is a list of several notable public cloud software companies. We look beyond the mega-caps, as SaaS pioneer Salesforce, or the legacy software companies that have pivoted to SaaS, such as Microsoft and Adobe.
Notable Public Cloud Software Companies
| Ticker | Company | Ticker | Exchange | Description |
|---|---|---|---|---|
| SNOW | Snowflake | SNOW | NYSE | Cloud-native data platform that enables organizations to store, analyze, and share massive volumes of structured and semi-structured data across multiple clouds. |
| TTAN | ServiceTitan | TTAN | NASDAQ | Provides CRM and field-service management software tailored for tradespeople. This platform helps contractors in areas like HVAC, plumbing, and electrical to streamline dispatch, scheduling, invoicing, and analytics |
| DDOG | Datadog | DDOG | NASDAQ | Provides observability tools for cloud applications, enabling performance monitoring, log analysis, and infrastructure tracking at scale. |
| NOW | ServiceNow | NOW | NYSE | A leader in digital workflow automation for enterprise IT, HR, customer service, and security operations. Offers strong land-and-expand SaaS economics. |
| MNDY | Monday.com | MNDY | NASDAQ | An intuitive work operating system for teams, blending project management, CRM, and productivity workflows under one customizable platform. |
| TEAM | Atlassian | TEAM | NASDAQ | Provides a variety of cloud-based collaboration tools (Jira, Confluence, Trello, Bitbucket, Loom) designed to help software and project teams work more efficiently worldwide. |
| HUBS | Hubspot | HUBS | NYSE | A leading customer relationship management (CRM) platform that offers integrated marketing, sales, customer service, and content management software. Its tools are designed to improve lead generation, automate workflows, and unify customer data. |
| ZM | Zoom | ZM | NASDAQ | Provides a cloud-based platform for video conferencing, voice calls, webinars, and team collaboration. |
| SAIL | SailPoint | SAIL | NASDAQ | A leading provider of identity and access management software for enterprises. |
| SHOP | Shopify | SHOP | NASDAQ | A leading e-commerce platform that enables businesses of all sizes to create, customize, and manage online stores. It offers tools for product management, payments, shipping, and marketing to help merchants sell across multiple channels. |
Cloud Software IPO Pipeline
The cloud software IPO pipeline includes vertical SaaS companies, AI-native platforms, developer-first tools, and low-code/no-code infrastructure providers. As enterprise cloud adoption continues to grow, more productivity, automation, and analytics-focused companies are expected to hit the public markets. The success of the SaaS model has led to its application in a variety of verticals, including AI, fintech, health-tech, and more.
Stay up to date with our IPO Calendar and the IPO Pro Pipeline to track upcoming listings in cloud software, SaaS, and enterprise tech.
HOW TO INVEST IN Cloud Software STOCKS
Investing in Cloud Software Stocks
Cloud software companies can offer exposure to recurring revenue models with high gross margins, strong unit economics, and predictable customer growth. While many companies reinvest heavily in growth, those with strong net dollar retention (NDR) and efficient land-and-expand strategies often become dominant players in their categories.
Sign up for a free trial of IPO Pro to track new cloud software IPOs.
Key Metrics for Saas Stocks
Watch for ARR (annual recurring revenue), net dollar retention, customer acquisition cost (CAC), CAC payback period, churn rate, gross margin, and Rule of 40 performance (revenue growth + EBITDA margin). Investors may glean insights and learn about the competitive landscape from a company’s Net Promoter Score and its positioning in the Gartner Magic Quadrant and Forrester Wave.
Best Cloud Software Stocks to Buy
Screen for software stocks that fit your criteria for market cap, revenue, growth, and profitability. Evaluate the company’s product category (data, DevOps, collaboration, vertical SaaS), go-to-market strategy (self-serve vs. enterprise sales), and retention performance. It is important to have a large total addressable market (TAM), but it is essential to have an increasing or dominant market share. Pay attention to high expansion revenue, and strong developer ecosystems or workflow lock-in (“stickiness”). Investors can often stomach near-term losses, knowing that profitability often arrives rapidly at scale, but in those cases a company’s growth must make up for the lack of profits, while net margins at least move in the right direction.
How Cloud Software Stocks Differ from Legacy Tech
Cloud-native companies typically operate under usage-based or subscription models, avoiding the upfront license fees of legacy software. They focus on product-led growth, rapid iteration, and scalability through cloud infrastructure, often achieving superior margins and faster deployment cycles.
A diversified cloud portfolio may include infrastructure platforms, vertical SaaS leaders, and collaboration tools serving the hybrid workforce.
Discover Cloud Software Investment Ideas by Exploring the Value Chain
The Cloud Software Value Chain shows how cloud-native platforms deliver value across the stack, from infrastructure and data layers to user-facing productivity tools. Understanding where each company fits helps investors identify market leaders and future disruptors.
Six core segments within the Cloud Software Value Chain:
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Cloud Infrastructure & Data Platforms
Companies like Snowflake (SNOW) and Databricks (private) provide foundational layers for storing, querying, and sharing massive volumes of data across hybrid and multi-cloud environments. These platforms underpin the AI, analytics, and app ecosystems of modern enterprises.
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Application Monitoring & DevOps
Platforms like Datadog (DDOG) and Dynatrace (DT) help developers monitor application health, optimize performance, and ensure uptime across distributed systems, which are critical for cloud-native teams and continuous deployment. DevOps tools like Atlassian
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Work Management & Productivity Tools
Companies such as Asana (ASAN) and Monday.com (MNDY) focus on improving collaboration, task tracking, and project execution. These tools are vital for hybrid workforces and digital operations. Certain tools sold by Atlassian and GitLab also qualify here.
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Automation & Workflow Platforms
ServiceNow (NOW), Zapier (private), Workiva (WK), and Appian (APPN) allow businesses to automate repetitive processes, orchestrate service requests, and integrate disparate systems. This segment is increasingly layered with AI for predictive workflows.
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Vertical SaaS Platforms
Companies building tailored software for specific industries, such as Toast (TOST) for restaurants and Veeva (VEEV) for life sciences, operate with high retention and domain-specific pricing power. This subsegment offers defensibility and niche TAM dominance.
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Security & Compliance SaaS
Though often its own sector, many SaaS platforms also offer security as a core feature. Companies like Okta (OKTA) (identity management) and Cloudflare (NET) help enterprises protect user data and enforce policies at scale.
A Framework for Investing Across the Cloud Software Ecosystem
Cloud software stocks offer a powerful combination of recurring revenue, high gross margins, and long-term scalability. Companies that successfully balance innovation, retention, and efficient growth often become category leaders.
Investors can capture different risk/reward profiles by blending mature platforms (e.g. ServiceNow, Snowflake) with emerging high-growth tools (e.g. Monday.com). As cloud adoption continues globally and GenAI is layered across SaaS workflows, the next decade of digital transformation will be built in the cloud.
