salesforce's (CRM - Free Report) impending first-quarter fiscal 2020 results are scheduled to be announced on May 4. The earnings performance is likely to benefit from the growing adoption of the company's cloud-based solutions.
The company is benefiting from a robust demand environment as customers are undergoing a major digital transformation. Notably, digitization is driving strategic relationships of the company. Its ability to provide an integrated solution for customers’ business problems is the key driver.
Click here to know how the company’s overall first-quarter performance is likely to be.
Rising Cloud Uptake
salesforce’s diverse cloud offerings are helping it its expand clientele, thereby driving top-line growth. The rapid adoption of the SaaS-based salesforce platform demonstrates solid demand for the company’s cloud-based solutions.
Further, enhancement of customer experience is likely to aid growth for the cloud segment. The company’s focus on AI and substantial progress with the launch of Einstein Analytics makes us optimistic about its upcoming quarterly results. Moreover, the launch of Customer 360 platform is likely to boost the same.
Notably, the company’s capacity to render a Customer Success Platform for both B2B and B2C companies is helping it drive its customer base.
Additionally, the company’s initiatives to extend globally in capitalizing on overseas demand for cloud-based applications are likely to lift the top line.
salesforce has been keen on building partnerships to grow its international operations. Partnership agreements with the likes of Amazon (AMZN - Free Report) , International Business Machines (IBM - Free Report) and Alphabet (GOOGL - Free Report) for the firms’ cloud services have been strengthening its international operations.
Notably, during the last few quarters, the company won several deals owing to its global expansion efforts.
However, due to seasonality, a larger deal activity is anticipated to have witnessed a slowdown in the soon-to-be-reported quarter. Also, deals inked in the year-ago quarter might cause a tough year-over-year comparison.
salesforce carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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