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Salesforce (CRM) Reports Q2: Everything You Need To Know Ahead Of Earnings


Kayode Omotosho /
2022/08/23 4:20 am EDT
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Customer relationship management software maker Salesforce (NYSE:CRM) will be announcing earnings results tomorrow after the bell. Here's what to expect.

Last quarter Salesforce reported revenues of $7.41 billion, up 24.2% year on year, in line with analyst expectations. It was a weak quarter for the company, with an underwhelming revenue guidance for the next quarter and a full year guidance 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 21.4% year on year to $7.69 billion, in line with the 23% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.03 per share.

Salesforce Total Revenue

The analysts covering the company have been growing increasingly bearish about the business heading into the earnings, with revenue estimates seeing five downward revisions over the last thirty days. 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 1.96%.

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. ZoomInfo delivered top-line growth of 53.5% year on year, beating analyst estimates by 5.3% and Freshworks reported revenues up 37.4% year on year, exceeding estimates by 2.95%. ZoomInfo traded up 10.5% on the results, and Freshworks was down 3.01%. Read our full analysis of ZoomInfo's results here and Freshworks's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 4.62% over the last month. Salesforce is up 1.19% during the same time, and is heading into the earnings with analyst price target of $245.6, compared to share price of $179.34.

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.