2-for1 Sale
The primary benefit of holding quality growth stocks in a Tax-Free Savings Account (TFSA) is to generate tax-sheltered market-beating returns. Any returns generated in this registered account from qualified investments are exempt from taxes.
Imagine investing $1,000 in Shopify soon after its IPO (initial public offering) and holding it in a TFSA. Today, the investment would be worth more than $36,000, all of which is tax-free.
Here, I have identified three other quality growth stocks that can supercharge your TFSA portfolio in the upcoming decade.
CrowdStrike stock
Down 32% from all-time highs, CrowdStrike (NASDAQ:CRWD) is among the largest cyber-security companies in the world. Valued at US$74 billion by market cap, CrowdStrike has already returned 421% to shareholders since its IPO in 2019.
CrowdStrike has increased its sales from US$481 million in fiscal 2020 (ended in January) to over US$3 billion in fiscal 2024. In the last 12 months, its revenue has risen by 33% year over year to US$3.5 billion.
Unlike other unprofitable growth stocks, CrowdStrike has reported free cash flow of US$1.2 billion in the last four quarters, indicating a margin of 33.4%. Moreover, its free cash flow has risen from less than US$20 million in fiscal 2020, which showcases the company’s high operating leverage.
CrowdStrike ended fiscal Q2 of 2025 with annual recurring revenue, or ARR, of US$3.9 billion, an increase of 32% year over year. Its operating margin improved by two percentage points to 24%, while free cash flow rose by 44% to US$272 million.
The company has forecast its total addressable market at US$100 billion, which means its growth story is far from over.
Docebo stock
A Canadian company part of the e-learning segment, Docebo (TSX:DCBO) should be part of your TFSA portfolio in 2024. Valued at $1.9 billion by market cap, Docebo ended Q2 with 3,898 customers and US$206 million in annual recurring revenue.
Its subscription sales account for 94% of the top line, which should enable Docebo to report stable cash flows across market cycles. Moreover, 81% of the ARR added in 2023 was represented by customers who chose multi-year contracts.
Docebo’s average annual contract value rose from US$12,000 in 2014 to US$52,000 in Q2 2024. Further, its net dollar retention rate stood at 104%, which suggests that existing customers increased spending on the platform by 4% in the last year.
Like CrowdStrike, Docebo is also profitable, reporting free cash flow of US$27 million in the last 12 months, up from US$15 million in 2023.
Datadog stock
The final growth stock on the list is Datadog (NASDAQ:DDOG). Valued at US$43 billion by market cap, Datadog provides an enterprise-facing monitoring and analytics platform for developers.
In the last five years, the company has grown its revenue at an exceptional compound annual growth rate of 55%. This rapid revenue growth allowed Datadog to report free cash flow of US$715 million in the last 12 months, up from US$632 million in 2023 and US$383 million in 2022. In the June quarter, it reported free cash flow of US$144 million, indicating a margin of 22%.
In Q2 2024, Datadog increased sales by 27% to US$645 million. It ended the quarter with 28,700 customers, up from 26,100 in the year-ago period. Further, 3,390 customers generated annual recurring revenue of US$100,000 in Q2, up from 2,990 last year.
Down 35% from all-time highs, Datadog remains positioned to deliver outsized returns to shareholders in 2024 and beyond.
