FX.co ★ Top 3 cloud companies with highest profit growth

Splunk

According to the company's earnings reports posted over the past months, the price of Splunk equities rose considerably, gaining 117% since a big drop in March. Such a steady rally signals a buoyant demand for its stocks among investors. At the end of August, Splunk shares were trading at $203.62 after having notched a record high of $217.33 in early August. Thus, the market cap of this rapidly growing company totals $32.3 billion. Contrary to the preliminary forecasts of analysts, who had expected a loss of $0.33 per share, the company reported about the same profit – $0.3 per share. However, investors started adding the company's securities to their portfolios not only because of the spike in the net profit. They were also impressed with the list of clients including more than 90 companies from the Fortune 100 rating.

Okta

Okta's shares managed to double in value, gaining 136% after falling to the lowest levels in March this year. The demand for the company's products is quite justified: its cloud platform helped people working from home to connect safely to corporate networks. The company's securities have been trading at $209.53 in recent days close to their highest level of $226.87 reached at the beginning of August. Okta’s market capitalization is around $26.1 billion. The company's revenue for the past month came as a complete surprise to experts, who had made rather modest forecasts. However, market participants are likely to pay attention mainly to Okta’s own outlook for its performance for the entire year. So far, analysts expect that annual revenue to increase by 33% compared to last year's results.

Workday

Workday cloud-based software provides solutions for the company's human resources and financial management activities. The company's shares gained more than 80% since the crash in the stock market in March. Recently, Workday has closed at $194.03 per share in comparison to February's reading of $202. The company's market capitalization is $45.5 billion. Workday faced some financial problems in the first quarter of this year but by the end of the second quarter, it was able to achieve the target level and even significantly exceeded it. Earnings per share in the second quarter are projected around $0.66 with an increase of 50% on a year-over-year basis. The company's subscription services previously accounted for about 85% of Workday's total revenue.