Salesforce Earnings: What To Look For From CRM

CRM software giant Salesforce (NYSE:CRM) will be reporting earnings this Wednesday after market hours. Here’s what you need to know.

Salesforce beat analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $9.83 billion, up 7.6% year on year. It was a strong quarter for the company, with an impressive beat of analysts’ EBITDA estimates and a solid beat of analysts’ billings estimates.

Is Salesforce a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Salesforce’s revenue to grow 8.7% year on year to $10.14 billion, in line with the 8.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.78 per share.

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 twice over the last two years.

Looking at Salesforce’s peers in the sales and marketing software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. HubSpot delivered year-on-year revenue growth of 19.4%, beating analysts’ expectations by 2.9%, and Freshworks reported revenues up 17.5%, topping estimates by 2.9%. HubSpot traded down 5.8% following the results while Freshworks was also down 2.5%.

Read our full analysis of HubSpot’s results here and Freshworks’s results here.

There has been positive sentiment among investors in the sales and marketing software segment, with share prices up 3.2% on average over the last month. Salesforce is up 1.6% during the same time and is heading into earnings with an average analyst price target of $344.62 (compared to the current share price of $256.44).

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