salesforce.com, inc. (NYSE:CRM) will give us one of the few remaining “important” earnings reports left for Q3 when the company hits the wires and mic on Tuesday after the closing bell. Co-Chief Executives Marc Benioff and Keith Block will host a call at 5:00 PM EST.
Significantly, the company hasn’t missed on the top line since January of 2006. Its subscription business model results in highly visible revenue streams.
salesforce.com, inc. (NYSE:CRM) has guided for Q3 non-GAAP EPS of $0.49-0.50 (vs. $0.39 last year) with revenue up 24-25% to $3.355-3.365 bln and unearned revenue up 20%. The Street expects revenue just above guidance.
The company has guided for Fiscal 2019 (January) non-GAAP EPS of $2.50-2.52 with revenue up 25% to $13.125-13.175 bln and operating cash flow (OCF) up 15-16%. Salesforce tends to tweak its revenue forecast higher as the year progresses.
The CRM leader usually gives its initial outlook for the following year along with third quarter results as well. The Street expects fiscal 2020 revenue growth of 20%.
At the company’s flagship Dreamforce conference two months ago, Salesforce announced a slew of new products and initiatives, including expanded relationships with both Amazon Web Services and Apple. CEO Marc Benioff said the economy was “still ripping”.
Obviously, given the action that has transpired in the meantime – with sentiment on markets and the economy deteriorating significantly and both AMZN and AAPL guiding down for Q4 – an updated take on this stance is something folks will be interested to hear.
Top Down View
salesforce.com, inc. (NYSE:CRM) trumpets itself as a company that develops enterprise cloud computing solutions with a focus on customer relationship management.
Salesforce is the leader in customer relationship management (CRM) cloud software, including sales force automation, customer service and support, marketing automation, digital commerce, community management, analytics, application development, Internet of Things (IoT) integration, and collaborative productivity tools. Salesforce had a near 20% market share in CRM last year while Oracle (ORCL) and SAP (SAP) were both in the 7% range.
The company offers Sales Cloud to store data, monitor leads and progress, forecast opportunities, and gain insights through analytics and relationship intelligence, as well as deliver quotes, contracts, and invoices.
It also provides Service Cloud, which enables companies to deliver personalized customer service and support, as well as a field service solution that enables companies to connect agents, dispatchers, and mobile employees through a centralized platform, which helps to schedule and dispatch work, and track and manage jobs in real-time.
In addition, the company offers Marketing Cloud to plan, personalize, and optimize one-to-one customer marketing interactions; Commerce Cloud, which enables companies to enhance engagement, conversion, revenue, and loyalty from their customers; and Community Cloud that enables companies to create and manage branded digital destinations for customers, partners, and employees.
Further, it provides Quip collaboration platform, which combines documents, spreadsheets, apps, and chat with live CRM data; Salesforce Platform for building enterprise apps, as well as artificial intelligence (AI), no-code, low-code, and code development and integration services, including Trailhead, Einstein AI, Lightning, Internet of Things, Heroku, Analytics, and AppExchange; and solutions for financial services, healthcare, and government.
Additionally, the company offers cloud services, such as consulting and implementation services; training services, including instructor-led and online courses; and support and adoption programs. It provides its services through direct sales; and consulting firms, systems integrators, and other partners. salesforce.com, inc. has a partnership with Apple Inc. to develop customer relationship management platform.
salesforce.com, inc. (NYSE:CRM) generated sales of $3.3B, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of 9.1% on the top line. In addition, the company is battling some balance sheet hurdles, with cash levels struggling to keep up with current liabilities ($3.4B against $8.5B, respectively).