Earnings results often indicate what direction a company will take in the months ahead. With Q4 behind us, let’s have a look at Salesforce (NYSE:CRM) and its peers.
Companies need to be able to interact with and sell to their customers as efficiently as possible. This reality coupled with the ongoing migration of enterprises to the cloud drives demand for cloud-based customer relationship management (CRM) software that integrates data analytics with sales and marketing functions.
The 4 sales software stocks we track reported a strong Q4. As a group, revenues beat analysts’ consensus estimates by 1.8% while next quarter’s revenue guidance was in line.
While some sales software stocks have fared somewhat better than others, they have collectively declined. On average, share prices are down 3.8% since the latest earnings results.
Salesforce (NYSE:CRM)
With its cloud-based platform named after its stock ticker symbol CRM (Customer Relationship Management), Salesforce (NYSE:CRM) provides customer relationship management software that helps businesses connect with their customers across sales, service, marketing, and commerce.
Salesforce reported revenues of $11.2 billion, up 12.1% year on year. This print was in line with analysts’ expectations, and overall, it was a very strong quarter for the company with a solid beat of analysts’ billings estimates and an impressive beat of analysts’ EBITDA estimates.
Salesforce delivered the weakest performance against analyst estimates and weakest full-year guidance update of the whole group. Unsurprisingly, the stock is down 3% since reporting and currently trades at $185.93.
Is now the time to buy Salesforce? Access our full analysis of the earnings results here, it’s free.
Best Q4: HubSpot (NYSE:HUBS)
Born from the idea that traditional interruptive marketing was becoming less effective, HubSpot (NYSE:HUBS) provides an integrated platform that helps businesses attract, engage, and manage customer relationships through marketing, sales, service, and content management tools.
HubSpot reported revenues of $846.7 million, up 20.4% year on year, outperforming analysts’ expectations by 2%. The business had a very strong quarter with a solid beat of analysts’ billings estimates and EPS guidance for next quarter exceeding analysts’ expectations.
HubSpot achieved the fastest revenue growth among its peers. The market seems happy with the results as the stock is up 11.1% since reporting. It currently trades at $232.60.
Is now the time to buy HubSpot? Access our full analysis of the earnings results here, it’s free.
