Will CRM Continue To Push Salesforce.com’s Growth for Q4?

by Trefis Team
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Salesforce.com (NYSE: CRM) is going to publish its results on March 4, 2019 and will also conduct an investor call. The consensus estimates expect the company to post revenues around $13.2 billion, up 26% from the previous fiscal year with an earnings estimate of around $2.60, nearly twice than the last fiscal year.

We currently have a $130 price estimate for the company. View our interactive dashboard – Our Outlook for Salesforce.com for FY 2019 and modify the key assumptions to arrive at a price estimate of your own. In addition, here is more Information Technology Data.

The company posted very strong Q3 results with revenue up 26% year on year (YOY). Operating Cash flow was also up 14% YOY. The company has also revised its earnings to $1.07 from $1.06 due to the strong results and expected strong Q4. The company recorded a revenue growth across geographies with EMEA growing the most with a 31% YOY increase in revenue, followed by APAC which grew at 26% YOY, and Americas at 25% YOY. As per IDC forecast Salesforce.com is expected to touch 20.3% in Market Share of CRM applications which is nearly 3 times that of the next company, i.e. Oracle at 7.3%.  We expect Salesforce.com to continue with this high growth in the 4th quarter, too.

The company aims to achieve total revenue of $23 billion by fiscal year 2022 and is driven by technological revolution including demand for artificial intelligence and machine learning. To achieve this, the company has introduced the next generation of its AI platform, Einstein, to unlock deeper customer insights and deliver a transformational customer experience. The platform now provides over 3 billion predictions and insights to Salesforce’s customers daily. We expect the AI platform to augment the company’s growth in the coming years and enable it to achieve the revenue target on or ahead of plan.

Salesforce.com has extended its strategic alliance with Google to deepen the integration between the company’s Marketing Cloud and Google Analytics 360. The initiative has been witnessing positive feedback from customers. Further, Salesforce Commerce Cloud continues to be the fastest growing enterprise commerce solution and is delivering solid results. The company recently acquired CloudCraze, the leader in B2B commerce, to offer a single platform that can be used for both B2B and B2C experiences by Salesforce’s clients. All these initiatives are likely to boost the company’s top-line as well as valuation in the near term.


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