4 Top Tech Stocks Growing Over 30% and Profiting (Part-1)

People have debated whether growth or value stocks are better for decades. False dichotomy. Investors typically think fast-growing companies waste capital to achieve market share and only start to profit at scale. But it's false. Some firms combine growth with profitability. These four companies are rare, but they're generating revenue above 30% and making genuine net profits.

CrowdStrike (NASDAQ: CRWD), Duolingo (NASDAQ: DUOL), Shift4 Payments (NYSE: FOUR), and AppLovin (NASDAQ: APP) will be examined.

1. CrowdStrike CrowdStrike offers organizations a choice of cloud-based cybersecurity technologies. These goods are called "modules" and number over 20. Customers can start small and add on—and they have.

When CrowdStrike's fiscal 2024 ended on Jan. 31, 64% of customers used at least five modules. At the end of fiscal 2023, 62% of clients used that many. Thus, clients are paying more on modules, which boosts the company's revenue.

Naturally, CrowdStrike is gaining clients. This enabled its fiscal 2024 revenue reach $3 billion, up 36% year over year, a fantastic growth rate. Revenue will climb 30% again if it meets management's fiscal 2025 high end.

SentinelOne stock has returned 50% in the past year, while CrowdStrike stock has gained 150%. Though SentinelOne is growing faster, CrowdStrike is far more profitable, thus investors may prefer it. CrowdStrike generated $89 million in full-year net income under GAAP, whereas SentinelOne lost $339 million.

2. Duolingo CrowdStrike combines the best of both worlds. Investors can also consider Duolingo's faster growth and better GAAP profit margin.

Duolingo's main business is its language learning app, which offers free and premium ad-supported and ad-free tiers. Maybe I'm surprised because I'm cheap. The corporation finished 2023 with 6.6 million paid customers, up 57% from 2022.

Due to its capacity to convert 27 million daily active users into subscribers, Duolingo is developing rapidly. The corporation earned $531 million in 2023, up 44%. And it earned $16 million, a 3% profit margin, just a fraction more than CrowdStrike's.

Of course, CrowdStrike and Duolingo are still developing profitability, so margins should improve. Thus, Duolingo anticipates growth in the future year. The low end of management's 2024 sales projection is roughly $718 million, implying at least 35% year-over-year growth.

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