Salesforce.com (CRM)

Re: Salesforce.com (CRM)

Postby winston » Sat May 30, 2020 5:57 pm

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Salesforce.com (CRM) reported Q1 earnings fell 25%, just beating views.

Revenue climbed 30% to $4.87 billion, including the Tableau acquisition.

The cloud-software pioneer guided lower on full-year revenue.

Shares fell Friday after briefly topping a buy point Thursday.

Source: IBD
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Re: Salesforce.com (CRM)

Postby winston » Mon Jun 01, 2020 1:34 pm

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Salesforce.com: Memories of GFC driving conservative guidance

Salesforce.com’s (Salesforce) 1QFY21 results came in within expectations.

Revenue grew 30% YoY (or 31% YoY in constant currency) to $4.87b, in-line with consensus.

Non-GAAP OPM came in at 13.1%, down from the 18.2% seen in 1QFY20 due largely to one-time COVID-19 charges taken this quarter.

Non-GAAP EPS came in at $0.70, down 24.7% YoY, though slightly ahead of consensus at $0.69.

cRPO for the quarter was $14.5b, up 23% YoY (or 24% in constant currency terms), in-line with original guidance.

While Salesforce’s Q2 and FY21 guidance were lower than expectations, management however cited improving trends within its pipeline and close rates between March till date, and noted that this strengthening of pipeline comes from different segments, regions and products.

In our view, the way to reconcile the apparent divergence of guidance vs. commentary stems from management choosing to adopt a more cautious approach by assuming that IT spending growth normalizes next year (rather than a V-shape recovery this year), which they believe to be appropriately conservative and consistent with their learnings as they navigated through the GFC; Salesforce is the only of the currently public SaaS companies that lived through the crisis.

All-in, we believe that management’s prudent approach helps to de-risk FY21, and the company remains well positioned as a key beneficiary of an acceleration in Digital Transformation as IT spend normalizes.

Valuations remain attractive and we maintain our FV of US$213.

Maintain BUY.

Source: OCBC
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Re: Salesforce.com (CRM)

Postby winston » Thu Aug 27, 2020 11:20 am

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Salesforce.com Inc (CRM US) - A force to be reckoned with

Salesforce.com’s (Salesforce) 2QFY21 results came in significantly above expectations.

The clear stand-out was the 20.2% non-GAAP operating margin, significantly above consensus at 15.9%.

Management has increased their full-year guidance, with the mid-point of FY21 guidance of ~$20.75b being increased by ~4% as compared to that which was provided last quarter.

We note that there has been strong double-digit growth registered across all cloud products in 2QFY21, including the core sales and service clouds, which speaks to management’s comments of strength across the business.

Large acquisitions (i.e. Tableau and MuleSoft) also appear to be coming together quite nicely.

Importantly, management noted that this is currently not a good environment for M&A, and they do not have such plans at the moment as the team remains focused on their business, focusing on execution.

All considered, we increase our forecasts and incorporate a lower WACC of 8.3% (from 9.3%) primarily from a lower risk-free rate assumption.

Thus, our fair value increases from US$213 to US$293. Maintain BUY.

Source: OCBC
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Re: Salesforce.com (CRM)

Postby winston » Thu Sep 17, 2020 9:17 pm

The Single Hottest Sector in the Entire Stock Market

by Mike DiBiase

By 1996, Marc Benioff was burned out and needed a change.

So he took a sabbatical from Oracle. He spent two months in India with a friend, visiting various spiritual leaders.

That’s where his meeting with the Mother of Immortal Bliss (Amma) changed him forever – and inspired him to create an entirely new kind of business…


Following his inspiration from Amma, he set aside 1% of the stock to be used in the future for people in need.


Source: DailyWealth.com

https://dailytradealert.com/2020/09/17/ ... ck-market/
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Re: Salesforce.com (CRM)

Postby winston » Tue Sep 22, 2020 8:29 am

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Salesforce.com: A Study In The Power Of The Platform

Summary

Salesforce.com once again delivered strong results this quarter, with revenue increasing almost 30%.

Evidence of its transformation from just a sales management tool has been emerging over the last few years.

The Mulesoft acquisition has now helped position Salesforce.com as a core platform for digital transformation, something that was most clearly evident this quarter.

Source: Seeking Alpha

https://seekingalpha.com/article/437505 ... nt=link-13
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Re: Salesforce.com (CRM)

Postby winston » Sat Sep 26, 2020 7:52 pm

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Stocks to Buy: Salesforce (CRM)

One of the pioneers in enterprise management software for customer resource management (CRM), it now is the dominant player in this space and has been expanding its base and capabilities for nearly two decades now.

Basically, CRM allows companies to manage and analyze its interactions with past, current and potential customers.

Within an enterprise level customer base, this can be very complicated.

And if different sales and customer service teams are working with these customers, bringing everyone in the loop has also been challenging.

And this doesn’t take into account access to marketing research and senior management access.

Salesforce is now cloud-driven and remains the top player in the sector. And given the work from home transition we’ve seen, that means a growing amount of new opportunities for sales.

CRM stock is up 54% in the past year, with some recent profit taking. But that makes it an even better buy.

Source: Investor Place
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Re: Salesforce.com (CRM)

Postby winston » Thu Dec 03, 2020 2:38 pm

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Salesforce.com Inc (CRM US) - Now to make it WORK

Salesforce is a global leader in CRM software, enabling companies to improve their relationships and interactions with their customers.

It has surpassed US$10b in annual revenue in FY18, reaching this milestone faster than any other enterprise software company in history.

It exists in a large TAM and its growth is powered by the digital transformation of companies of various sizes and industries.

Salesforce possesses a highly scalable model arising from its multitenanted technology architecture, and is looking to capitalize on growth opportunities overseas.

Salesforce’s suite of products also presents multiple cross-selling and upselling opportunities as it deepens its relationships with its existing customers. BUY.

CFO Retiring

Valuations relatively undemanding

We believe some of the near-term pessimism has been built into valuations, with Salesforce trading at 0.45x 2FY consensus EV/sales/growth, as compared to the median of our comp set at 0.95x.

Following adjustments, our FV eases from US$293 to US$279.

We continue to believe that Salesforce will be a core beneficiary of acceleration in Digital Transformation, but would recommend investors to be patient given the time needed to digest the above developments. BUY.

Source: OCBC
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Re: Salesforce.com (CRM)

Postby winston » Thu Dec 03, 2020 7:56 pm

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Is Salesforce.com A Buy After The Slack Deal?

By Haris Anwar

Investors aren't thrilled with Salesforce.com's (NYSE:CRM) acquisition of Slack Technologies (NYSE:WORK), announced Tuesday, for $27.7 billion, mostly in cash.

It is the software and cloud-based services company's most expensive deal to date.

The transaction is valuing Slack, whose platform makes it easy for offsite workers to communicate and coordinate work documents, at about $45.50 a share, a 54% premium to its unaffected price, representing a multiple of about 26 times forward sales.

As such, Slack is Salesforce’s most expensive deal by a variety of measures. Its previous two acquisitions—$14.7 billion for Tableau Software last year and $5.8 billion for MuleSoft the year before—valued those enterprises at 11 times and 15 times forward sales, respectively, according to a WSJ report, which cited Brent Thill of Jefferies Group for these estimates.

But price is not the only issue making investors uneasy. Some believe the acquisition won’t bring the kind of synergies and competitive advantage founder and CEO Marc Benioff is trying to achieve through this deal, the biggest wager of his career.

First, Salesforce will be competing directly with the tech giant Microsoft (NASDAQ:MSFT), which is aggressively promoting its workplace collaboration platform, Team. This videoconferencing and chat software now has 115 million daily active users, up from 75 million in April.

Slack, on the other hand, didn’t benefit from the pandemic’s great work-from-home shift the way other companies did. It stopped updating its number of daily active users late last year when it reached 12 million.

Wedbush analyst Daniel Ives, who has an underperform rating on the stock, termed Slack a “poster child” for the (work-from-home) trend, adding that Teams will aggressively look to court Slack's "unparalleled installed base of customers." Ives said that this remained "the main competitive threat to Slack."

That said, there are legitimate reasons that prompted Salesforce to acquire Slack that could make it a whole new type of business in an environment when customers are reconstructing how they are working. With Slack under its belt, Salesforce gets a strong opening into a collaborative interface, combined with its other relationship management services.

Despite the challenges that come with this acquisition, CEO Benioff remains quite bullish on his bet, saying the deal was made in heaven and is a major step towards doubling Salesforce’s revenue. In a statement on Tuesday he said:

“Together, Salesforce and Slack will shape the future of enterprise software and transform the way everyone works in the all-digital, work-from-anywhere world.”

Bottom Line

Clearly, the market has doubts about Salesforce’s latest move and that’s going to depress its share price in the short-run. But Benioff and his team have a history of producing powerful growth through acquisitions.

In its last five fiscal years, Salesforce has grown sales at a pace of more than 24% each year, a performance that many tech CEOs dream about delivering. More weakness in Salesforce shares, in our view, should be taken as a buying opportunity.

Source: investing.com

https://www.investing.com/analysis/is-s ... -200546638
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Re: Salesforce.com (CRM)

Postby winston » Thu Dec 03, 2020 8:06 pm

Barclays (Overweight rating unchanged, PT lowered to $276 from $315)

"The three main bear arguments raised will likely not hold up in the long-run and hence we expect a recovery in the shares once the dust settles.
(1) Optically Q3 saw a billings miss, but cRPO [current remaining performance obligation] was ahead and we had previewed that consensus had mis-modeled billings.
(2) Slack is not an overpriced deal like the CEO had discussed in Q2. Slack had meaningfully underperformed its peers post a weak Q2 and CRM used that opportunity.
(3) Losing CFO Mark Hawkins is not ideal but he was not the 'lone-defender' of improving profitability.

- Raimo Lenschow
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Re: Salesforce.com (CRM)

Postby winston » Thu Dec 03, 2020 8:08 pm

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Oppenheimer (Outperform rating, $265 price target maintained)

"The recent slowdown in the company's leading indicators, while partially explainable due to large M&A distraction, tough comparison, and a challenging selling environment among the distressed industries, is likely to weigh on investor confidence in the near-term.

We believe long-term investors need to own the stock because of a large [total addressable market], leadership positioning, and predictability.

However, achieving and likely exceeding the F4Q growth targets will be required for a higher company valuation."

- Brian Schwartz
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