04 Mar 2021

By Polen Capital

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Are SaaS businesses the new safeties? Why Polen think they could be recession-resistant investments

In a challenging COVID-19 environment, the performance of Polen’s Software-as-a-Service (SaaS) holdings has led the firm to question whether these companies may offer the benefits of typical recession-resistant businesses but with potentially more sustainable growth.

Here’s why:

  • The traditional software business model has significantly evolved toward a SaaS model, which, for some companies, has resulted in stronger business economics and resiliency.
  • A transition to the SaaS model can potentially unlock significant value for a business by addressing the shortcomings of the traditional software model, reducing costs, establishing a recurring revenue stream, and providing more pricing power.
  • Pursuing a SaaS model is a complex process and demands significant upfront investment, but if successful, can result in higher margins and more consistent revenues.
  • In an accelerated digital-first environment, we believe software companies have become even more mission critical to their customers both professionally and personally.

Download the whitepaper here.

Montgomery offers investors access to a concentrated portfolio of outstanding global businesses through the Polen Capital Global Growth Fund. You can read more about the fund here: Polen Global Growth

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