Salesforce (CRM) Reports Q2: Everything You Need To Know Ahead Of Earnings

Customer relationship management software maker Salesforce (NYSE:CRM) will be reporting earnings tomorrow afternoon. Here’s what investors should know.

Salesforce met analysts’ revenue expectations last quarter, reporting revenues of $9.13 billion, up 10.7% year on year. It was a weak quarter for the company, with a miss of analysts’ billings estimates and full-year revenue guidance missing analysts’ expectations.

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 7.3% year on year to $9.23 billion, slowing from the 11.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $2.36 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Salesforce has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 1% on average.

Looking at Salesforce’s peers in the sales software segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Freshworks delivered year-on-year revenue growth of 20%, beating analysts’ expectations by 3%, and HubSpot reported revenues up 20.4%, topping estimates by 2.9%. Freshworks traded down 5.8% following the results while HubSpot was up 3.3%.

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

Investors in the sales software segment have had steady hands going into earnings, with share prices flat over the last month. Salesforce is up 2.6% during the same time and is heading into earnings with an average analyst price target of $300.4 (compared to the current share price of $265.26).

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