Avoid This Slow-Growing SaaS Stock

Timothy Green, The Motley Fool
·3-min read
Avoid This Slow-Growing SaaS Stock

Many publicly traded software-as-a-service companies pour cash into sales and marketing to rapidly acquire new subscription customers. Since the revenue from those customers is recognized over time while the costs to acquire them are largely incurred up front, SaaS companies often report big losses as they're scaling up their businesses. Not all SaaS companies are equally good at translating sales and marketing spending into growth or profits.