Customer relationship management software maker Salesforce (NYSE:CRM) will be announcing earnings results tomorrow after market hours. Here's what investors should know.
Last quarter Salesforce reported revenues of $8.38 billion, up 14.4% year on year, beating analyst revenue expectations by 4.9%. It was a solid quarter for the company, with a decent beat of analyst estimates and a meaningful improvement in gross margin.
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 10.2% year on year to $8.17 billion, slowing down from the 24.3% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.61 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 1.3%.
Looking at Salesforce's peers in the sales and marketing software segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. DoubleVerify delivered top-line growth of 26.7% year on year, beating analyst estimates by 3.78% and Momentive reported revenues up 1.57% year on year, missing analyst estimates by 0.11%. DoubleVerify traded up 5.92% on the results, Momentive was flat on the results. Read our full analysis of DoubleVerify's results here and Momentive's results here.
There has been positive sentiment among investors in the software segment, with the stocks up on average 9.73% over the last month. Salesforce is up 9.19% during the same time, and is heading into the earnings with analyst price target of $228.5, compared to share price of $215.97.
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The author has no position in any of the stocks mentioned.