Yesterday, 5:37 PM
Yesterday, 4:24 PM
- Salesforce (NYSE:CRM) is guiding for FQ1 revenue of $1.485B-$1.505B and EPS of $0.13-$0.14, slightly unfavorable to a consensus of $1.5B and $0.15. FY16 (ends Jan. '16) guidance is for revenue of $6.475B-$6.52B (+20-21% Y/Y) and EPS of $0.67-$0.69 vs. a consensus of $6.5B and $0.69.
- Forex (i.e. a strong dollar) is expected to have a $175M-$200M impact on FY16 revenue. With many other enterprise IT firms having offered below-consensus guidance thanks at least partly to forex pressures, Salesforce's outlook is going over well.
- Also going over well: The deferred revenue balance rose 32% Y/Y in FQ4 to $3.32B, an acceleration from FQ3's 28% growth. The unbilled deferred revenue balance rose 27% Y/Y to $5.7B; FQ3 growth was 29%.
- The deferred revenue growth helped Salesforce generate free cash flow of $246.9M, +23% Y/Y and well above net income of $92.8M. GAAP operating expenses rose 15% Y/Y to $1.12B (compares with 26% revenue growth) - sales/marketing spend totaled $736.1M, R&D $206M, and G&A $181.4M.
- Americas revenue (73% of total revenue) rose 29% Y/Y to $1.06B. European revenue rose 21% to $255M, and Asia-Pac 17% to $134M.
- CRM +8.9% AH to $68.44, making new 52-week highs along the way.
- FQ4 results, PR
Yesterday, 4:08 PM
Tue, Feb. 24, 5:35 PM
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Fri, Feb. 20, 6:39 PM
- Salesforce (NYSE:CRM) has updated its Wave cloud business intelligence/analytics platform (launched last October to much fanfare) to include new tools meant to allow mobile users to quickly pull up and visualize data.
- The new tools: 1) Mobile Connector, which lets raw data be quickly pulled into Salesforce's Analytics Cloud mobile app, which then uses it to create visualizations. 2) Mobile Dashboard Designer, which allows analytics dashboards to be created and modified on a phone. 3) Links, which allows apps built on the Salesforce1 platform to connect to specific datasets, charts, and dashboards.
- The cloud CRM giant notes over half of its Analytics Cloud queries have come from mobile devices. As Tableau can vouch, corporate interest in BI/analytics tools that can easily be used by non-IT personnel is growing rapidly.
- Also launched by Salesforce: Heroku Enterprise, a new version of the Heroku cloud app development platform (PaaS) that sports collaboration, security (access control), and customer support features sought by enterprises. Heroku has been in pitched battle with fellow PaaS market leaders Microsoft and Amazon (among others).
- Salesforce's FQ4 report arrives on Feb. 25.
Thu, Feb. 12, 2:22 PM
- A slew of enterprise IT names are outperforming after Cisco beat estimates and respectively reported 10%, 8%, and 7% Y/Y growth in enterprise, SMB, and public sector orders. The Nasdaq overall is up 1%.
- Cisco reported particularly strong figures for enterprise-focused business lines: Switching revenue rose 11%, wireless (Wi-Fi-dominated) 18%, collaboration 10%, and data center (UCS servers) 40%. Service provider demand (orders -1%) remained soft.
- Enterprise standouts include EMC (EMC +2.5%), VMware (VMW +2.3%), SAP (SAP +3.1%), Salesforce.com (CRM +3.8%), NetSuite (N +2.6%), Teradata (TDC +4.6%), Splunk (SPLK +2.5%), Varonis (VRNS +3.9%), Gigamon (GIMO +2.8%), and NetScout (NTCT +2.7%).
- EMC's gains comes in spite of rival NetApp's FQ3 miss and soft FQ4 guidance; share loss to EMC, which has been seeing healthy mid-range and scale-out NAS storage growth, could be partly to blame. VMware is adding to the Wednesday gains seen following a Bernstein upgrade.
- Earlier: Telecom/networking stocks rally thanks to Cisco
Fri, Jan. 30, 11:54 AM
- Salesforce (CRM -2.2%), ServiceNow (NOW -2.2%), Paylocity (PCTY -5.8%), Castlight (CSLT -4.1%), Cornerstone OnDemand (CSOD -3.6%), InContact (SAAS -2.2%), and Zendesk (ZEN -2.1%) are selling off after cloud ERP/HR/e-commerce software vendor NetSuite (N -11.7%) offered light Q1 and 2015 sales guidance to go with a Q4 beat. The Nasdaq is down 0.4%.
- As one would expect, NetSuite states forex has much to do with its guidance. On the CC (transcript), CFO Ronald Gill noted "the weighted average value of the foreign currencies in which we recognize international revenue has fallen more than 8% against the dollar." However, it's worth noting only 27% of NetSuite's Q4 revenue was international.
- NetSuite's Q4 numbers were solid: Subscription/support revenue grew 34%, and billings rose 34% to $201M (well above revenue of $157.9M). 54 customers were added for NetSuite's SuiteCommerce e-commerce software platform - CEO Zach Nelson humbly observes that was more than 3x the 17 customer adds rival Demandware (DWRE -1.6%) reported for Q3 (a seasonally weaker quarter).
- ServiceNow, the top player in the cloud IT service desk software market, provided above-consensus guidance on Wednesday.
Thu, Jan. 22, 8:58 AM
- Arista Networks (NYSE:ANET): Price target $95 vs. current $64.28. Implied upside: 48%.
- Stratasys (NASDAQ:SSYS): PT of $110 vs. current $75.19. Implied upside: 46%.
- Ingram Micro (NYSE:IM): PT of $35 vs. current $25.49. Implied upside: 37%.
- Synaptics (NASDAQ:SYNA): PT of $87 v. current $63.78. Implied upside: 36%.
- FireEye (NASDAQ:FEYE): PT of $45 vs. current $34.22. Implied upside: 31.5%.
- Salesforce.com (NYSE:CRM): PT of $70 vs. current $57.71. Implied upside: 21%.
Dec. 18, 2014, 2:04 PM
- With the help of stronger-than-expected hardware sales, Oracle (ORCL +9.2%) beat FQ2 estimates in spite of a 400 bps forex headwind (twice what was originally expected). FQ3 guidance was conservative after taking forex pressures into account.
- The numbers have been good enough for Oracle to surge to new highs and receive a slew of target hikes, and to lead many enterprise tech names to outperform amid a big market rally. The Nasdaq is up 1.9%.
- Microsoft (MSFT +3.2%), Cisco (CSCO +2.3%), EMC (EMC +3.7%), VMware (VMW +5.1%), and beaten-down IBM (IBM +2.8%) are among the enterprise tech names outperforming today. Others: SPLK +4.6%. CA +3.5%. RHT +3.4%. VRNS +6.3%. PCTY +5.8%. JIVE +4.6%. VMEM +5.2%. SAAS +4.7%. BRCD +3.8%.
- Oracle's healthy cloud software numbers are drawing attention: While traditional software license revenue fell 4% Y/Y, its SaaS/PaaS revenue rose 41%. SaaS/PaaS bookings totaled $170M, and are expected to be "well over" $1B in FY16 (ends May '16). Fusion cloud app bookings rose over 100%.
- On the CC (transcript), Oracle performed its customary trash-talking of cloud app rivals. "We are clearly growing faster than Salesforce (CRM +4%) and were more than three times the size of Workday (WDAY +3.2%)." Both firms are posting solid gains.
- Oracle's numbers come as Bloomberg reports the Chinese government is looking to "purge most foreign technology from banks, the military, state-owned enterprises and key government agencies by 2020." IBM, Cisco, and other U.S. firms have already seen their Chinese sales fall sharply following last year's NSA spying uproar.
Dec. 12, 2014, 5:42 PM
- Salesforce's (NYSE:CRM) AppExchange Store Builder leverages technology used to create the company's AppExchange store (offers business apps that work with Salesforce's cloud apps) to allow enterprises to create custom stores for distributing and managing apps across multiple platforms.
- Salesforce is offering the solution for free to users who already have a Salesforce license, and charging $5/user/month to those who don't. Gartner forecast last year 25% of enterprises will have a private app store by 2017.
- MobileIron (NASDAQ:MOBL), SAP, VMware's AirWatch unit, and several startups compete in this space. In addition, Microsoft plans to include enterprise app store support in Windows 10.
Nov. 19, 2014, 5:38 PM
Nov. 19, 2014, 4:29 PM| 6 Comments
Nov. 19, 2014, 4:24 PM
- Salesforce (NYSE:CRM) expects FQ4 revenue of $1.436B-$1.441B and EPS of $0.13-$0.14, below a consensus of $1.45B and $0.15.
- Preliminary FY16 (ends Jan. '16) revenue guidance of $6.45B-$6.5B (+20%-21% Y/Y) is below a $6.66B consensus. The guidance assumes a $125M-$150M forex headwind. Salesforce has a history of offering conservative initial full-year guidance.
- The deferred revenue balance rose 28% Y/Y in FQ3 to $2.22B, a slight slowdown from FQ2's 31% growth. The unbilled deferred revenue balance rose 29% Y/Y to $5.4B; 32% growth was seen in FQ2.
- Americas revenue (72% of total) +29% Y/Y to $995.3M; Europe +30% to $253M; Asia-Pac +21% to $135.4M.
- GAAP opex rose 18% Y/Y to $1.07B, trailing revenue growth of 29%. Sales/marketing spend rose 22% to $709.6M.
- Free cash flow was $49.1M, down 25% Y/Y and below net income of $93.6M.
- CRM -3.4% AH. FQ3 results, PR.
Nov. 19, 2014, 4:07 PM
Nov. 18, 2014, 5:35 PM
Nov. 17, 2014, 11:09 AM
- LinkedIn (LNKD -4%) is seeing profit-taking after the FT reported Facebook (FB -0.7%) is planning to launch a business-focused version of its core service that will support separate work accounts and feature collaboration tools. Enterprise social networking software vendor Jive (JIVE -5.9%) is also selling of.
- Salesforce (CRM -1.5%), whose Chatter business social networking platform has seen strong growth, is off moderately. The Nasdaq is down 0.4%.
- Facebook's service will be able to lean on the company's 1.35B-strong active user base, as well as its very high Web and mobile app engagement rates (much higher than LinkedIn's).
- At the same time, the offering will have to contend with corporate wariness towards Facebook (due to Facebook's historical consumer focus and reputation as a productivity-killer), as well as LinkedIn's established base of professional accounts (332M at the end of Q3) and the popularity of business social networking tools from the likes of Jive, Salesforce, Microsoft, and IBM.
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