Technology stocks have benefitted from the surge in digitalisation and the advent of generative artificial intelligence.

Investors who are looking for promising growth stocks can look at one particular subset of this sector – software-as-a-service (SaaS) businesses.

SaaS companies offer a cloud platform that delivers a range of subscription-based services to their customers.

Such businesses enjoy good revenue visibility as customers sign long-term contracts to utilise these services.

We feature five fast-growing US SaaS companies that you can consider adding to your buy watchlist.

Snowflake (NYSE: SNOW)

Snowflake offers a cloud platform for data storage and allows for data analysis to gain insights across simultaneous data sets with low lag and minimal latency.

The company reported a strong set of earnings for its fiscal 2025 (FY2025) ending 31 January 2025.

Revenue improved by 29.2% year on year to US$3.6 billion.

Gross profit did better, rising by 33.4% year on year to US$2.4 billion.

Snowflake’s gross margin increased from 64.4% in FY2024 to 66.5% in FY2025.

The SaaS company also generated a positive free cash flow of US$884.1 million, 13.5% higher than a year ago.

Snowflake reported remaining performance obligations (RPO) of US$6.9 billion for a 33% year-on-year increase.

Management believes that the company’s total addressable market will more than double by 2028 to US$342 billion, offering ample opportunities for further growth.

Crowdstrike (NASDAQ: CRWD)

Crowdstrike is a cybersecurity company operating a cloud platform that helps organisations to protect against online threats, cyberattacks, and provides endpoint security and automated protection.

For FY2025, Crowdstrike’s revenue rose 29.4% year on year to US$3.95 billion.

Gross profit increased by 28.8% year on year to US$2.96 billion, with gross margin dipping slightly from 75.3% in FY2024 to 74.9% in FY2025.

However, the cybersecurity company generated a positive free cash flow of US$1.07 billion, up 13.6% year on year.

Crowdstrike’s ending annual recurring revenue (ARR) grew by 23% year on year to hit US$4.2 billion, and management expects revenue for FY2026 to come in between US$4.7 billion to US$4.8 billion.

Shopify (NYSE: SHOP)

Shopify is an e-commerce company operating a cloud platform that provides entrepreneurs and small business owners with the tools needed to operate, run, and market their businesses.

The SaaS company saw its 2024 revenue rise 25.8% year on year to US$8.9 billion while gross profit increased by 27.2% year on year to US$4.5 billion.

Gross margin inched up slightly from 49.8% in 2023 to 50.4% in 2024.

Free cash flow did much better, surging 76.5% year on year to US$1.6 billion.

Shopify’s platform saw increased activity last year with gross merchandise value climbing nearly 24% year on year to US$292.3 billion.

For 2025, management expects revenue to grow in the mid-20s percentage rate year on year.

Salesforce (NYSE: CRM)

Salesforce operates one of the largest customer relationship management (CRM) platforms that focuses on sales, customer service, and marketing automation.

FY2025 saw a strong performance by the CRM specialist with revenue increasing 8.7% year on year to US$37.9 billion.

Operating profit surged 43.8% year on year to US$7.2 billion while net profit soared 49.8% year on year to US$6.2 billion.

The company also churned out a positive free cash flow of US$12.4 billion, 30.9% higher than the previous fiscal year.

Salesforce’s total RPO was up 11% year on year to US$63 billion.

The company expects FY2026 to be another strong year, with revenue growing 7% to 8% year on year to between US$40.5 billion to US$40.9 billion.

Management has identified a massive total addressable market of US$290 billion by 2026 which is growing at a compound annual growth rate of 13%.

This large, expanding market should provide ample opportunities for Salesforce to continue scaling up and growing its revenue and profits.

Intuit (NASDAQ: INTU)

Intuit is a SaaS company offering a cloud platform for accounting and tax filing with products such as TurboTax, Credit Karma, and QuickBooks.

Intuit reported a robust set of earnings for the first half of fiscal 2025 (1H FY2025) ending 31 January 2025.

Revenue jumped 14% year on year to US$7.2 billion while operating income climbed 27.8% year on year to US$864 million.

Net profit stood at US$668 million, up 12.5% year on year.

Intuit generated a positive free cash flow of US$1.4 billion, more than triple the US$369 million churned out a year ago.

A quarterly dividend of US$1.04 per share was declared, up 16% year on year.

Management believes that it occupies just a 5% market share of its total addressable market.

If the company expands globally, its potential market will be US$326 billion.

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Disclosure: Royston Yang does not own shares in any of the companies mentioned.