Salesforce (CRM) Reports Earnings Tomorrow. What To Expect

Jabin Bastian /
2022/11/29 4:09 am EST

Customer relationship management software maker Salesforce (NYSE:CRM) will be announcing earnings results tomorrow after market close. Here's what to expect.

Last quarter Salesforce reported revenues of $7.72 billion, up 21.7% year on year, in line with analyst expectations. It was a weak quarter for the company, with guidance for both the next quarter and full year missing analysts' expectations.

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 14% year on year to $7.82 billion, slowing down from the 26.6% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.22 per share.

Salesforce Total Revenue

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 1.36%.

Looking at Salesforce's peers in the sales software segment, some of them have already reported Q3 earnings results, giving us a hint of what we can expect. HubSpot delivered top-line growth of 30.8% year on year, beating analyst estimates by 4.19% and ZoomInfo reported revenues up 45.5% year on year, exceeding estimates by 3.27%. HubSpot traded up 11.8% on the results, ZoomInfo was down 12.00%. Read our full analysis of HubSpot's results here and ZoomInfo's results here.

The fears around raising interest rates have been putting pressure on tech stocks and while some of the software stocks have fared somewhat better, they have not been spared, with share price declining 7.22% over the last month. Salesforce is down 4.93% during the same time, and is heading into the earnings with analyst price target of $213.60, compared to share price of $154.40.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.