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Salesforce CRM to Publish FY2021 Q1 Earnings

05/29/2020

Salesforce.com CRM to release its First-quarter Fiscal 2021 results on May 28. For the quarter, the company projects total revenues between $4.875 billion and $4.885 billion. Moreover, non-GAAP earnings are expected between 70 cents and 71 cents per share.

The Zacks Consensus Estimate for revenues is marked at $4.85 billion, indicating an increase of 29.9% compared to FY2020. Moreover, the consensus mark for earnings has remained stable at 69 cents per share over the past 30 days. But, the bottom line is expected to decline 25.8% compared to 2019. However, Salesforce’s earnings beat the Zacks Consensus Estimate in all the trailing four quarters, the average being 31.6%.

Current Factors

Salesforce’s FY2021 Q1 earnings are likely to have been adversely impacted by a decline in software spending due to the coronavirus outbreak. The company’s exposure to small and medium businesses (SMBs), hard-hit by the coronavirus impact on the economy, is likely to have impacted its top line.

Moreover, the tough competition from Oracle and Microsoft remains a concern in addition to forex headwinds. Increasing investment in international expansions and data centers might have been a projection on the to-be-reported quarter’s profitability.

However, the ongoing digital transformation has been benefiting salesforce’s top line, a trend that most likely continued in the to-be-reported quarter too. The company is also likely to have gained traction from its firm focus on building and extending relationships with leading brands across industries and geographies.

Growth across all its four major cloud service offerings, namely Sales Cloud, Service Cloud, Platform and Marketing & Commerce Cloud is likely to have boosted the company’s subscription as well as supported its revenue stream, which is a key catalyst.

Additionally, strategic acquisitions of mainly Tableau and Salesforce.org are expected to have aided the company’s top-line growth. IdeaHelix is a salesforce certified silver partner. Reach out to us for more details follow ideahelix.com or Reach out to us at info@ideahelix.com