Exploring Constellation Software And 2 Other High Growth Tech Stocks In Canada

Over the last 7 days, the Canadian market has risen 1.1%, and over the past year, it has climbed 15%, with earnings forecasted to grow by 16% annually. In this thriving environment, identifying high-growth tech stocks like Constellation Software and two others can be crucial for investors seeking to capitalize on robust market conditions.

Top 10 High Growth Tech Companies In Canada

Click here to see the full list of 23 stocks from our TSX High Growth Tech and AI Stocks screener.

Underneath we present a selection of stocks filtered out by our screen.

Simply Wall St Growth Rating: ★★★★★☆

Overview: Constellation Software Inc., along with its subsidiaries, acquires, develops, and manages vertical market software businesses across Canada, the United States, Europe, and internationally with a market cap of CA$91.28 billion.

Operations: Constellation Software Inc. generates revenue primarily from its Software & Programming segment, amounting to CA$9.27 billion. The company focuses on acquiring, developing, and managing vertical market software businesses across various regions globally.

Constellation Software’s recent earnings report showcased a robust performance, with Q2 revenue at $2.47 billion, up from $2.04 billion the previous year, and net income rising to $177 million from $103 million. The company’s R&D expenditure has been a significant driver of innovation, contributing to its 16.2% annual revenue growth forecast and 23.6% expected annual profit growth over the next three years. The launch of Omegro consolidates various business units under one umbrella, enhancing their global reach with over 15,000 customers across more than 70 countries.

Simply Wall St Growth Rating: ★★★★★☆

Overview: Docebo Inc. operates as a learning management software company that provides an AI-powered learning platform in North America and internationally, with a market cap of CA$1.80 billion.

Operations: The company generates revenue primarily from its educational software segment, totaling $200.24 million. Its AI-powered learning platform is offered across North America and internationally.

Docebo’s recent performance highlights its strong growth trajectory, with Q2 revenue reaching $53.05 million, a notable increase from $43.59 million last year, and net income shifting to $4.7 million from a net loss of $5.67 million previously. The company forecasts annual earnings growth of 34.1%, significantly outpacing the Canadian market’s 15.6% projection, driven by robust R&D investments that accounted for 14% of revenue in the last quarter, fostering continuous innovation in their SaaS offerings.

Simply Wall St Growth Rating: ★★★★★☆

Overview: HIVE Digital Technologies Ltd. engages in the mining and sale of digital currencies in Canada, Sweden, and Iceland, with a market cap of CA$569.71 million.

Operations: HIVE Digital Technologies Ltd. generates revenue primarily through the mining and sale of digital currencies, totaling $123.14 million. The company operates in Canada, Sweden, and Iceland with a market cap of CA$569.71 million.

HIVE Digital Technologies has shown a remarkable turnaround, with Q1 2024 sales reaching $29.64 million, up from $23.34 million the previous year, and net income hitting $3.26 million versus a net loss of $16.25 million last year. The company’s revenue is forecasted to grow at an impressive rate of 54.2% annually, significantly outpacing the Canadian market’s 7% growth projection. R&D expenses have been pivotal in this growth trajectory; HIVE invested approximately 14% of its revenue into R&D last quarter to drive innovation in digital asset mining operations and blockchain technology advancements.

The company’s strategic expansion into Paraguay with a planned 100 MW digital asset mining operation underscores its commitment to leveraging favorable government policies and low energy costs for sustainable growth. This initiative is expected to generate over $100 million in stable U.S dollar revenue for Paraguay’s utility company over three years, highlighting HIVE’s potential for substantial future contributions both locally and internationally as it continues to scale operations amidst rising global demand for Bitcoin.

Where To Now?

• Delve into our full catalog of 23 TSX High Growth Tech and AI Stocks here.
• Got skin in the game with these stocks? Elevate how you manage them by using Simply Wall St’s portfolio, where intuitive tools await to help optimize your investment outcomes.
• Streamline your investment strategy with Simply Wall St’s app for free and benefit from extensive research on stocks across all corners of the world.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data
and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your
financial situation. We aim to bring you long-term focused analysis driven by fundamental data.
Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
Simply Wall St has no position in any stocks mentioned.

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