How does Intellinetics' SaaS growth compare to its peers in the digital transformation space?

SaaS growth relative to peers

Intellinetics’ Q2 2025 SaaS revenue rose 12.6% YoY – a solid, double‑digit increase but still well below the 20‑30% growth rates that the higher‑flying digital‑transformation peers (e.g., Coupa, Tradeweb, and ServiceNow’s low‑code platform units) have been posting in recent quarters. The market is rewarding companies that can scale Payables‑Automation or low‑code solutions at a faster pace; most of those peers are reporting 20‑25%+ SaaS expansion as they capture the “post‑COVID” spend surge on cloud‑based process automation. Intellinetics’ more modest growth suggests it is still in the early commercialization phase of its IntelliCloud Payables Automation product, which management now flags as the primary SaaS driver.

Trading implications

• Fundamentals: The 12.6% increase shows a positive trajectory, but the gap to peer growth leaves room for upside if the Payables‑Automation platform accelerates. Watch for future guidance on SaaS expansion and gross‑margin trends – a widening margin would signal successful scaling.
• Technical: The stock has been trading near its 200‑day moving average (≈$1.12) with a modest upward bias. If the next earnings release confirms a SaaS growth acceleration to >15‑20%, the price could break above the recent resistance at $1.20, inviting a short‑term breakout rally. Conversely, a continuation of sub‑15% growth may keep the stock confined below the 200‑day line, limiting upside and exposing it to a potential pull‑back toward the 50‑day average (~$1.05).
• Actionable view: Maintain a neutral‑to‑light‑bullish stance. Consider a small‑position or add‑on on a pull‑back to $1.05–$1.08 with a target near $1.20–$1.25, contingent on the company delivering stronger SaaS growth guidance in the next quarter. If guidance remains modest, tighten stops around $1.00 and look for a downside move toward the 20‑day trend line.