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Home Business & Finance Salesforce delivers, Wall Street doubts as stock falls 6.3% post-earnings – TechCrunch

Salesforce delivers, Wall Street doubts as stock falls 6.3% post-earnings – TechCrunch

Document Analysis NLP IA

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positive
sentiment

Sentiment0.10326241134752
objective
redaction

Subjectivity0.48962006079027
probably it's an affirmation
Affirmation0.44915254237288

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Key Concepts (and relevance score)

Summary (IA Generated)

Wall Street investors can be fickle beasts.

82 billion quarter when it reported earnings yesterday.

You want high growth and solid projected revenue — check and check.

How did Wall Street react to this stellar report? It could be that investors simply don’t believe the growth is sustainable or that the company overpaid when it bought Slack at the end of last year for over $27 billion.

But if investors are looking for a high growth company, Salesforce is delivering that.

While Slack was expensive, it reported revenue over $250 million yesterday, pushing it over the $1 billion run rate with more than 100 customers paying over $1 million in ARR.

Yet Wall Street decided to focus on the negative, and see “the glass half empty” as he put it in his note to investors.

“The stock is clearly in the show-me camp, which means it’s likely to take another couple of quarters for investors to buy into the idea that fundamentals are actually quite solid here, and that Slack was opportunistic (and yes, pricey), but not an attempt to mask suddenly deteriorating growth,” Hynes wrote.

During the call with analysts yesterday, Brad Zelnick from Credit Suisse asked how well the company could accelerate out of the pandemic-induced economic malaise, and Gavin Patterson, Salesforce’s president and chief revenue officers says the company is ready whenever the world moves past the pandemic.

So I think you’re hearing today a message from us all that the business is strong, the pipeline is strong and we’ve got confidence going into the year,”Patterson said.

While Salesforce execs were clearly pumped up yesterday with good reason, there’s still doubt out in investor land that manifested itself in the stock starting down and staying down all day.

As long as they keep producing quarters like the one they had this week, they should be just fine, regardless of what the naysayers on Wall Street may be thinking today.


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