Customer relationship management software maker Salesforce (NYSE:CRM) will be reporting earnings tomorrow after the bell. Here's what you need to know.
Last quarter Salesforce reported revenues of $8.25 billion, up 11.3% year on year, in line with analyst expectations. It was a mixed quarter for the company, with revenue, remaining performance obligations (a leading indicator of revenue), and EPS ahead of expectations. On the other hand, Salesforce's revenue guidance for the full year slightly missed analysts' expectations while implied full year non-GAAP operating profit was ahead.
Is Salesforce buy or sell heading into the earnings? Read our full analysis here, it's free.
This quarter analysts are expecting Salesforce's revenue to grow 10.5% year on year to $8.53 billion, slowing down from the 21.8% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.89 per share.
Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time over the past two years on average by 1.26%.
Looking at Salesforce's peers in the sales software segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. HubSpot delivered top-line growth of 25.5% year on year, beating analyst estimates by 4.68% and Freshworks reported revenues up 19.5% year on year, exceeding estimates by 2.57%. HubSpot traded down 4.24% on the results, Freshworks was up 4.23%.
Read our full analysis of HubSpot's results here and Freshworks's results here.
There has been a stampede out of high valuation technology stocks and while some of the sales software stocks have fared somewhat better, they have not been spared, with share price declining 10.8% over the last month. Salesforce is down 7.66% during the same time, and is heading into the earnings with analyst price target of $243.4, compared to share price of $207.85.
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The author has no position in any of the stocks mentioned.