Salesforce Beats Earnings And Raises CRM Guidance

Viewing 12 posts - 1 through 12 (of 12 total)
  • Author
    Posts
  • #20852
    Super Harley
    Participant

    Cloud enterprise software firm Salesforce.com reported better than…

    [article]1542[/article]

    #20865
    ThePitBoss
    Participant

    Canaccord analyst Richard Davis has a buy rating and a $175 price target

    Said the first quarter “was one of the more curious quarters in a decade of publishing on CRM.”

    “Specifically, we got random inbound queries during the quarter that ranged from numerology over relative stock price performance to concerns about billings momentum to vague comments about accounting,” Davis said.

    “We suggested that such concerns reversed causality by letting a stock price tell you the fundamentals, rather than vice versa. We get it. It is disorienting to endure the whipsaw from panic selling in December 2018 to manic buying in January and February only to get hammered by another slew of disturbing Tweets from [President Donald Trump],” Davis said.

    #20866
    ThePitBoss
    Participant

    Stifel analyst Tom Roderick has a buy rating and a $185 price target

    Note titled “‘Move Along. Nothing to See Here.’ A Standard Q1 Never Felt So Good,” said that while “current RPO was a touch light of the Street, bogged down by an extra point of currency headwinds, total RPO growth exceeded Street estimates, fueling management’s long-term target of $26bn-$28bn in FY23 total revenue.”

    The company highlighted continued strength in digital transformation projects that centered around its Customer 360 vision and entirely dismissed the notion that churn has elevated in recent months or that Sales Cloud has hit a wall,” Roderick said.

    #20867
    ThePitBoss
    Participant

    JPMorgan analyst Mark Murphy has an overweight rating and a $180 price target

    Called the first quarter “an inline quarter but with generally consistent fundamentals, supporting the steady growth trajectory of ~20% at scale across multiple product lines.”

    “We see CRM shares as relatively attractive, but do not see table-pounding opportunities in software currently,” Murphy said.

    #20868
    ThePitBoss
    Participant

    Raymond James analyst Brian Peterson has a strong buy rating and a $200 price target

    Said Salesforce’s full-year numbers held steady despite a currency exchange headwind.

    “With overall demand commentary remaining strong and an organic [current revenue performance obligation] growth in the 20% range, we believe this dynamic is likely better than some cautious overtures into the quarter,” Peterson said.

    Revenue performance obligation, or RPO, refers to the company’s billed and unbilled future revenue under contract.

    #20869
    ThePitBoss
    Participant

    Cowen analyst J. Derrick Wood has an outperform rating and a $185 price target

    Said the quarter and management commentary was encouraging. With first-quarter concerns “now largely put to rest,”

    Wood said “we would be more aggressive buyers of shares of CRM.”

    #20870
    ThePitBoss
    Participant

    #20871
    ThePitBoss
    Participant

    [color=green][b]Salesforce.com Inc. (NYSE: CRM) reiterated as Outperform with a $175 target price at Credit Suisse.
    Wedbush reiterated as Outperform rating and $192 target price[/b][/color]

    #20921
    Super Harley
    Participant

    Salesforce Announces Acquisition Of Tableau For $15.7 Billion

    Salesforce (NYSE:CRM) announced intention to acquire Tableau Software (NYSE: DATA). The decision follows last week’s announcement by Google (NASDAQ: GOOGL) of its intent to acquire Looker.

    The press release quotes Marc Benioff, Chairman and co-CEO, Salesforce, as saying “We are bringing together the world’s #1 CRM with the #1 analytics platform.” While I still consider Salesforce primarily an SFA vendor, the intent is clear. Salesforce still has a, to be honest, fairly kludgy interface and it is difficult to analyze the information with the product.

    Salesforce management understands the need to improve the analytical components of their range of offering.

    [b]There is also an interesting difference in the Google acquisition.
    [/b]
    Looker is a pure-play cloud product. Tableau is one of the more senior BI players. While they have moved strongly into the cloud in the last two years, they have a strong presence in the on-premises world. That experience can help Salesforce to better understand larger enterprises and to place itself more firmly in the hybrid world.

    The press release also makes clear that Tableau is intended to fit with Salesforce Einstein, the company’s initiative to move into machine learning driven analytics. Both Salesforce and Tableau have been moving in that direction, as the market expects.

    Leverage a strong BI tool with the underpinnings of artificial intelligence (AI) is a smart and necessary move.

    The acquisition is expected to be completed by October 31, 2019, the end of Salesforce’s third quarter. What will be interesting to watch through that time and over the next two years is how Salesforce handles Tableau’s existing business and customer base as an independent entity.

    The initial announcement states that Tableau will continue to operate independently, implying that Tableau will be able to continue supporting other applications that compete with Salesforce, but customers will be concerned unless more messaging follows to support the long term viability of independence.

    The recent decisions by Google and Salesforce show that the larger companies who had focused on cloud as an almost pure message are realizing that business needs more. It needs insight. Tableau’s acquisition is a sign that Salesforce knows it needs to mature and provide better analytics. It’s a good move.

    https://www.forbes.com/sites/davidteich/2019/06/10/salesforce-announced-intended-acquisition-of-tableau-for-15-7-billion/#481ab3da145e

    #20922
    Super Harley
    Participant

    Reaction

    [color=red]Market Summary > salesforce.com, inc.
    NYSE: CRM
    153.10 USD −8.17 (5.07%)[/color]

    [color=green]Market Summary > Tableau Software Inc Class A
    NYSE: DATA
    167.93 USD +42.72 (34.12%)[/color]

    #20923
    Super Harley
    Participant

    Salesforce Signs Definitive Agreement to Acquire Tableau
    Share

    Adam Selipsky
    President & CEO, Tableau
    June 10, 2019

    In 2003, Tableau set out to pioneer self-service analytics with an intuitive analytics platform that would empower people of any skill level to work with data. Our customers grew with us to form the strongest analytics community in the world. And today, that mission to help people see and understand data grows stronger.

    I’m excited to announce that Tableau has entered into an agreement to be acquired by Salesforce in an acquisition that combines the #1 CRM with the #1 analytics platform. By joining forces we will accelerate our ability to accomplish our mission. Together, Salesforce and Tableau share a deep commitment to empowering their respective communities and enabling people of every skill level to transform their businesses, their careers, and their lives through technology.

    I’d like to share the email I sent to our incredible Tableau team to usher in this new chapter in our history.

    One of the most amazing aspects of Tableau is how focused the company is on its mission — helping people see and understand data. It is so inspiring to see thousands of Tabloids making this vision a reality daily.

    Today we are embarking on a new chapter that will dramatically accelerate our ability to achieve that mission. We are incredibly excited to announce that we have entered into a definitive deal for Tableau to be acquired by Salesforce in one of the most historic combinations in the history of the software industry.

    As you well know, we are a special company with incredible customers who are doing amazing things with our products. In a short 16 years, we have gone from a start-up in a bedroom to a billion dollar public company. We have been able to serve millions of people in more than 86,000 organizations around the world. We have been heads down building and delivering the analytics capabilities that are so critical to all of those customers. And with a bright future ahead of us, as we’ve powered through the subscription transition, built an enterprise business, and strengthened so many parts of the company. However, it was precisely because of our many strengths and momentum that we were attractive to Salesforce.

    As our two companies began joint discussions, the possibilities of what we might do together became more and more intriguing. They have leading capabilities across many CRM areas including sales, marketing, service, application integration, AI for analytics and more. They have a vast number of field personnel selling to and servicing customers. They have incredible reach into the fabric of so many customers, all of whom need rich analytics capabilities and visual interfaces. They have a leading brand and generate huge awareness through massive events such as Dreamforce. They have a passionate and engaged global community called Trailblazers. On behalf of our customers, we began to dream about we might accomplish if we could combine our ability to help people see and understand data with their ability to help people engage and understand customers.

    In addition, we were quickly struck by the cultural similarities between the companies. A desire to change the world through data and digital transformation. A customer-centered view of the world. A focus on empowered employees. And a dedication to service and giving back to our local and global communities by bringing all of our corporate resources to bear.

    For all of the reasons above, our founders, Board of Directors, and management team all came to believe that the best way, the most exciting way forward for Tableau, was to join forces with Salesforce. We all believe that the growth potential is enormous and that customers will love what we can bring them together. We also think that there will be a ton of interesting and fun opportunities for our teams and employees, as we figure out how to make the best use of all of the new tools in our toolboxes.

    Our mission remains the same. We have much work left to do to help people see and understand data – and to make the world a better place in the process. Now we will be able to dramatically accelerate our ability to pursue that mission and become the defining company that ushers in the era of analytics ubiquity: Accelerated Ubiquity! I am more excited than ever about the adventure ahead and hope all of you will be too.

    Onward,
    Adam

    https://www.tableau.com/about/blog/2019/6/blog-1-110508

    #21605
    ThePitBoss
    Participant

    Compass Point initiated Salesforce as ‘buy’

    “We view the company as a core holding in our universe because the company is a primary player in the adoption of digital transformation, has built a platform across the CRM space that consistently drives upsell, and has executed consistently for over a decade on its durable growth model. The stock has recently underperformed the market as investors worry that last month’s Tableau acquisition announcement is a sign that overall growth may be slowing – which is a view that is contrary to our research and the discrepancy in viewpoints drives our Buy rating. ”

Viewing 12 posts - 1 through 12 (of 12 total)
  • You must be logged in to reply to this topic.