The software industry has been one of the major beneficiaries of the pandemic-led switch to remote working and the digital transformation across industries. According to Statista, software market revenue is projected to reach $626.45 billion in 2022, with the United States generating most of the revenues globally. In addition, software revenues are expected to grow at a 7.1% CAGR to $824.85 billion by 2026.
The demand for enterprise software and services has increased significantly in end-use industries, with companies scaling their businesses to increase their efficiency and to cater to a larger market. Furthermore, the hybrid working model is expected to drive the industry’s growth with the widespread adoption of cloud-based platforms and rising demand for industry-specific software.
However, tech stocks had a rough time last month, with the tech-heavy Nasdaq Composite losing close to 9%. But software stocks Park City Group, Inc. (PCYG), SurgePays, Inc. (SURG), and TSR, Inc. (TSRI) outperformed the broader market and were the top performers in the industry.
Park City Group, Inc. (PCYG)
PCYG in Salt Lake City, Utah, operates as a software-as-a-service provider that designs, develops, and markets proprietary software products. The company offers ReposiTrak MarketPlace, ReposiTrak Compliance and Food Safety solutions, and ReposiTrak Supply Chain solutions.
Last month, XF, an animal and pet food product company, announced that it started using PCYG’s ReposiTrak Compliance Management Solution for easy reception and verification of documentation from its suppliers. PCYG should benefit from this venture.
PCYG’s income from operations increased 84.9% year-over-year to $1.17 million in its fiscal first quarter, ended September 30. Its net income, applicable to common stockholders, grew 96% from its year-ago value to $0.80 million. Its EPS increased 100% from its year-ago value to $0.04.
The Street expects the company’s revenue to increase 3% year-over-year to $5.33 million for its fiscal second quarter, ended December 2021. Likewise, the $0.04 consensus EPS estimate indicates a 75.1% rise year-over-year. PCYG’s shares gained 34.5% in price in January.
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