CRM software giant Salesforce (NYSE: CRM) will be reporting earnings this Wednesday after market hours. Here’s what to look for.
Salesforce met analysts’ revenue expectations last quarter, reporting revenues of $11.2 billion, up 12.1% year on year. It was a strong quarter for the company, with a solid beat of analysts’ billings estimates and full-year guidance of accelerating revenue growth.
Is Salesforce a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Salesforce’s revenue to grow 12.4% year on year, improving from the 7.6% increase it recorded in the same quarter last year.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Salesforce has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Salesforce’s peers in the sales software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. HubSpot delivered year-on-year revenue growth of 23.4%, beating analysts’ expectations by 2.1%, and Freshworks reported revenues up 16.5%, topping estimates by 2.3%. HubSpot traded down 19% following the results while Freshworks was also down 3.3%.
Read our full analysis of HubSpot’s results here and Freshworks’s results here.
There has been positive sentiment among investors in the sales software segment, with share prices up 10% on average over the last month. Salesforce’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $262.27 (compared to the current share price of $179.67).
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