Here Is What To Expect

Customer relationship management software maker Salesforce (NYSE:CRM) will be reporting results tomorrow after market close. Here’s what you need to know.

Salesforce missed analysts’ revenue expectations by 0.5% last quarter, reporting revenues of $9.99 billion, up 7.6% year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations and a slight miss of analysts’ annual recurring revenue 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 6.8% year on year to $9.75 billion, slowing from the 10.7% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.55 per share.

Salesforce Total Revenue

Analysts covering the company have generally 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 software segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Freshworks delivered year-on-year revenue growth of 18.9%, beating analysts’ expectations by 2.1%, and HubSpot reported revenues up 15.7%, topping estimates by 2%. Freshworks traded up 2.9% following the results while HubSpot was down 8.8%.

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

There has been positive sentiment among investors in the sales software segment, with share prices up 9.4% on average over the last month. Salesforce is up 4.4% during the same time and is heading into earnings with an average analyst price target of $363.95 (compared to the current share price of $277.40).

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