Shares of the giant provider of CRM solutions, Salesforce (NYSE: CRM) and identity management software firm Okta (NASDAQ: OKTA) bounced last week after both the companies topped expectations in Q2 and provided an upbeat outlook.
Salesforce (CRM) shares surged more than 10% last week as the company’s latest financials have beaten expectations and offered guidance that topped analyst estimates. The stock jumped more than 60% this year. In the quarter, revenue increased 11 per cent to US$8.6 billion. During its earnings call, the company announced a partnership with IBM to bring Salesforce’s AI tools to customers of both companies. For the third quarter, Salesforce expects revenue of $8.71 billion vs $8.66 billion estimates. They also raised FY24 revenue guidance of $34.65 billion to $34.75 billion.
Earnings per share (EPS) $2.12 vs. $1.90 expected
Revenue $8.6 billion vs. $8.53 billion expected
‘Our AI, data, CRM plus trust platform, well, it’s propelled us to become the third largest enterprise software company by revenue in the world,’ - Salesforce CEO Marc Benioff said.
Okta (OKTA) stock rose almost 20% last week after the software company reported better-than-expected adjusted earnings and revenue in the second quarter. The strong Q2 results were boosted by growing demand for security and authentication services. Okta's revenue rose 23 percent in the second quarter from a year earlier to US$556 million. The company's subscription revenue for the period reached $542 million, marking a substantial 24% year-over-year growth. The identification software provider also raised its annual revenue and adjusted earnings forecast.
Earnings per share (EPS) $0.31 vs. $0.22 expected
Revenue $556 million vs. $534 million expected
“Our focus on execution and efficiency has delivered solid top-line results with significant improvements to operating profit and cash flow year-over-year. We are building on our position as the leading independent identity partner,” Okta CEO, Todd McKinnon said.
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