3 Software Stocks Riding Cross Border Digital Services Growth

Global trade rules are being pulled in two directions, with some countries leaning into cooperation and others raising new barriers. That split matters for anything tied to cross-border digital services, where regulation, tariffs and data rules can reshape earnings power quickly. This article looks at three stocks from the Global Digital and Cross-Border Services Leaders screener that sit in the crosshairs of these shifts and shows how the same headlines can create both risk and opportunity.

The stocks highlighted below are just a starter set from this theme, and the full screen surfaced another 20 companies with equally compelling business stories that are not covered here. To go straight to the source, use the Global Digital and Cross-Border Services Leaders screener to identify, filter and analyze the highest conviction plays in this cross-border digital services space.

Procore Technologies (PCOR)

Overview: Procore Technologies runs a cloud-based construction management platform that lets project owners, contractors, architects and engineers coordinate work across borders.

Operations: Procore generates about US$1.42b from internet software and services, with roughly US$1.21b from the United States and US$214 million from other regions.

Market Cap: US$7.85b

Procore Technologies fits this screener because it sells construction management as a cloud service, linking digital workflows across projects in multiple countries.

"Accelerating adoption of AI-powered solutions in construction, particularly Procore Helix and Agent Builder, is driving increased customer automation, data unification, and workflow efficiency. This positions Procore as an indispensable platform and is likely to boost future revenue growth and support higher pricing, positively impacting both top-line and margins."

What really shapes the long term story is how one pressure on construction customers ultimately shows up in Procore Technologies pricing power.

If that pricing power question is what you care about next, read the full narrative for Procore Technologies to see how Procore Technologies’ AI push and customer budgets really intersect.

IONOS Group (XTRA:IOS)

Overview: IONOS Group provides subscription web hosting, domains, website builders, productivity apps, and cloud infrastructure so businesses can run online across borders.

Operations: IONOS Group generates about €1.36b from web presence, productivity, and cloud solutions, with €755 million from Germany and the rest across the UK, USA, Spain, France, Poland, and Austria.

Market Cap: €4.73b

IONOS Group is one of the purest plays on the screener theme, since its whole model is about renting out digital plumbing for online business formation, cross-border commerce, and GDPR-conscious cloud workloads across Europe and beyond.

"The accelerating demand for digital sovereignty and GDPR-compliant cloud solutions across Europe is driving significant new enterprise and public sector interest in IONOS's sovereign cloud offerings; as these extended sales cycles convert, they are expected to create new streams of high-margin revenue and support long-term top-line growth."

The real swing factor is how one underappreciated source of demand eventually feeds through into pricing power and profit conversion.

That swing factor is exactly what the full narrative for IONOS Group unpacks, showing how sovereign cloud demand, pricing power and margin potential could be getting misread.

Klaviyo (KVYO)

Overview: Klaviyo runs a cloud-based B2C CRM and marketing automation platform that helps brands personalize customer engagement across email, mobile, social and service channels globally.

Operations: Klaviyo generates about US$1.39b from internet software, with US$817 million from the United States and the rest across EMEA and APAC markets.

Market Cap: US$4.50b

For the Global Digital and Cross-Border Services Leaders theme, Klaviyo is effectively selling the pick-and-shovel software that lets brands turn global consumer data into targeted messages, which directly ties its fortunes to the growth of digital services trade.

"The regulatory and technical shift away from third-party cookies and toward first-party data benefits Klaviyo's unified, vertically integrated platform. This positions the company to pursue more wallet share from brands seeking compliant, data-driven personalization solutions, which in turn supports revenue and margin resiliency."

What really moves the Klaviyo story from here is how one unresolved pressure on marketing budgets ultimately filters through to pricing power and margins.

That pricing pressure is only half the story, and the full narrative for Klaviyo maps where Klaviyo’s first party data strengths could accelerate value as budgets keep shifting.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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