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No. of Recommendations: 4
Thanks for the list, GD_. Note that my intention in the Tech Growers screen is to identify consistent 30%+ revenue growers specifically within the Information Technology sector, and, more specifically, the Software sub-sector.

The screen excludes other sectors such as Healthcare and Consumer Discretionary. I personally don't invest in biotech stocks because it usually involves speculating on a binary outcome. I prefer consistent, predictable revenues growth, not risky speculation.

The companies that can consistently grow revenues by more than 30% year over year on top of a 9-figure or 10-figure revenue stream, and can manage to do it for 12+ consecutive quarters in a row, tend to be companies in the Software-as-a-Service (SaaS) industry. The reason they can do this is that most of the revenue recurs annually, due to customers paying a monthly subscription fee to use the software.

There is a financial metric associated with SaaS companies called Net Dollar-Based Expansion Rate(NDBER). Suppose you have a SaaS company generating $300M of revenue in Year 1, that has a NDBER rate of 120% (this is quite common). That means that in Year 2, the sales people could take a year-long vacation and do no work, and gain no new customers, and the company would still generate $360M in revenue.

Why? Because they retain 100% of the existing customers in Year 2, who not only keep on paying the same subscription fee they did in Year 1, but they sign up for new premium features for which they pay an additional 20%. That's what an NDBER of 120% means. For example, a customer who pays $5,000 in subscription fees in Year 1 typically pays $6,000 in subscription fees in Year 2. Nice business model, huh?
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