In today’s digital-first economy, subscription-based SaaS companies stand out for their ability to pair rapid growth with highly predictable cash flows. The strongest players not only acquire customers efficiently but also sustain industry-leading net revenue retention (NRR) rates, ensuring that existing clients expand their spending over time.
High NRR, coupled with favorable lifetime value to customer acquisition cost (LTV/CAC) ratios, translates into durable margins, recurring revenue stability, and outsized compounding potential. As global cloud adoption accelerates and enterprises increase reliance on digital infrastructure, SaaS leaders with this level of retention and scalability offer investors some of the most resilient and high-upside opportunities in the market today.
Here are 9 of the top subscription-based SaaS stocks with high retention. Learn why strong insurer coverage, recurring revenue, and growing international adoption make these companies attractive for long-term investors.
| Company Name (Ticker) | Analyst Upside | P/E Ratio |
| Snowflake (SNOW) | 20.1% | 164.51 |
| Twilio (TWLO) | 30.0% | 21.53 |
| CrowdStrike Holdings (CRWD) | 16.5% | 108.34 |
| Veeva Systems (VEEV) | 6.6% | 36.64 |
| Zscaler (ZS) | 16.9% | 78.15 |
| Monday.com (MNDY) | 64.7% | 42.88 |
| DocuSign (DOCU) | 26.2% | 19.67 |
| ServiceNow (NOW) | 31.0% | 48.31 |
| Datadog (DDOG) | 23.8% | 67.53 |
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These are 3 of the top SaaS stocks that stand out for their consistent customer retention, recurring revenue strength, and long-term growth potential.
Snowflake (SNOW)
Snowflake has built one of the stickiest SaaS ecosystems in the enterprise software world by revolutionizing how companies manage and analyze their data. Unlike traditional on-premise systems, Snowflake’s cloud-native data warehouse allows organizations to scale seamlessly across multiple clouds while eliminating infrastructure overhead. This flexibility ensures that once companies migrate their workloads to Snowflake, the switching costs become prohibitively high, making churn extremely rare.
Customers not only stay but also expand usage as their data needs grow. This is evident in Snowflake’s Net Revenue Retention (NRR), which consistently exceeds 120% and most recently hovered around 126%. That means existing customers spend, on average, over 25% more year after year, a clear sign of both satisfaction and expansion.
Snowflake further strengthens retention by layering in AI and machine learning capabilities, which increase the value of its platform over time. In essence, Snowflake is not just selling storage or compute power; it’s embedding itself as a critical data operating system that grows with its customers’ digital strategies.
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ServiceNow (NOW)
ServiceNow stands out as a subscription-first SaaS leader with some of the highest renewal rates in the industry, approaching 98%. Its strength comes from providing a mission-critical workflow platform that powers IT service management, HR, finance operations, and increasingly, AI-driven automation.
Because enterprises rely on ServiceNow to orchestrate day-to-day business functions, the platform becomes deeply embedded across organizational workflows. This integration creates extremely high switching costs, locking in customers for the long term.
Beyond retention, ServiceNow also demonstrates consistent subscription revenue growth, which recently increased more than 20% year-over-year. What makes this even more compelling is the company’s ability to upsell customers into new modules like customer service management, security operations, and AI automation.
The result is not only durable renewals but also meaningful revenue expansion from its existing base. ServiceNow is more than just a SaaS subscription; it has become the backbone of digital enterprise transformation, which explains its exceptional customer loyalty.
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Datadog (DDOG)
Datadog has emerged as one of the strongest examples of high-retention SaaS thanks to its observability platform that enables enterprises to monitor infrastructure, applications, and security in real time. Its subscription-based model benefits from a classic land-and-expand dynamic: companies often start with one product, such as infrastructure monitoring, and then quickly adopt additional modules in logs, APM, security, or AI observability.
This multi-product adoption strategy is a major driver of Datadog’s Dollar-Based Net Retention (DBNR), which has consistently run above 115% and, in some periods, above 130%. Retention strength at Datadog is also fueled by the nature of modern IT complexity. As businesses migrate workloads to the cloud and rely on microservices, they cannot afford blind spots in performance or security.
Once Datadog becomes central to a company’s monitoring strategy, it is not easily replaced, which keeps gross revenue retention in the mid-to-high 90% range. Additionally, Datadog’s steady release of new products ensures customers expand spend over time, creating a powerful compounding effect on subscription revenue. This combination of necessity, integration, and expansion cements Datadog as one of the most resilient and high-retention SaaS businesses in the market today.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
