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Looking to add some excitement to your portfolio? Investing in software stocks could give you that jolt, while also setting up your portfolio to make money in the long run. And if you're looking for some solid picks in this sector, I've got your back.

Read on to dive into three software stocks that are worth your attention: software giant Microsoft (MSFT -0.55%),programmatic advertising platform The Trade Desk (TTD -2.18%), and cloud-based security provider Cloudflare (NET -4.95%). Get ready to learn why these three companies could be great additions to your portfolio this year.

You can't beat the classics sometimes. Microsoft is an excellent investment after dominating the software industry for decades. The market opportunities might have changed, but the company's growth prospects remain enormous, even now.

For example, the tech giant's revenue rose by 10% in constant currency in the recently reported third quarter of 2023. If that jump doesn't impress you much, maybe you didn't notice that the global economy is waist-deep in an inflation-based crisis. Any growth should be seen as good news in this market, especially if the growing business was large and established in the first place.

And that's for the whole shebang, including underperforming businesses such as Windows licenses and Microsoft-branded hardware devices. Balancing out those weak spots, the Redmond, Washington, company is pulling off some truly remarkable growth in cloud computing and productivity software. Strong demand for Windows Azure and other cloud-based services is driving that train.

Of course, no investment is a sure thing, but Microsoft seems well positioned for continued growth in the years to come. It's no surprise that as a leading cloud-computing platform with a keen eye on the artificial intelligence (AI) space, the stock is up by more than 27% year to date in this AI-flavored economy.

But wait -- there's more. In the third quarter, Microsoft returned $9.7 billion of spare cash to shareholders through buybacks and dividends. That stockholder-friendly move was based on $17.8 billion in free cash flows. Microsoft is putting those deep pockets to good use.

You'll want to take a closer look at The Trade Desk in the digital advertising space.

The company's programmatic advertising platform is gaining market share, and its advertising business is snowballing. In the fourth quarter of 2022, The Trade Desk reported revenue growth of 24% year over year.

Remember what I said about any growth being good news? That's even more true in the advertising sector, which has taken the inflation-based downturn on the chin. Ad buyers are holding their purse strings tightly since their prospective customers generally aren't ready to buy stuff. A 24% revenue jump against that backdrop is nothing short of stunning.

Like Microsoft, The Trade Desk's ongoing success has caught the attention of hungry investors lately. Share prices are up by 40% year to date.

For a software stock with strong growth potential in the advertising space, consider adding The Trade Desk to your portfolio. When this company does a good job, it makes ad campaigns more effective with a lower budget. This programmatic advertising platform looks like a great addition to your holdings.

And when you're looking for ideas in internet security and performance services, look no further than Cloudflare. The company is gaining market share, and its customer base is growing rapidly. It added 114 large customers in the first quarter of 2023, with annual contracts worth $100,000 or more. That customer group now has 2,156 members.

Cloudflare is also expanding its product portfolio and growing its global footprint. In the first quarter, the company reported revenue growth of 37% year over year. I don't need to remind you of the challenging market environment, right? The gains are only getting bigger.

The last quarter was tough, with customers scrutinizing every penny of their operating budgets. On last week's first-quarter earnings call, CEO Matthew Prince likened it to the grimmest days of the pandemic. Still, Prince emphasized that his company remains indispensable, not just an expendable luxury. As he put it, "Thankfully, we continue to be a must-have, not a nice-to-have."

So stop me if you've heard this before, but Cloudflare is a software stock with explosive growth potential. You should consider adding this promising company to your portfolio, giving you a healthy exposure to the internet security and performance markets. Like Microsoft and The Trade Desk, Cloudflare should serve your wealth-building investment goals well for the long haul.

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3 Best Software Stocks to Buy in 2023 and Beyond - The Motley Fool