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Will Higher Cloud Adoption Aid salesforce (CRM) Q4 Earnings?

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salesforce's (CRM - Free Report) fourth-quarter fiscal 2020 results are likely to benefit from increased adoption of the company's cloud-based solutions. The results are scheduled to be announced on Feb 25.

The company is likely to have gained from a robust demand environment with customers having undergone a major digital transformation. Notably, digitization has been 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 fourth-quarter results are likely to be.

Higher Cloud Adoption: A Tailwind

salesforce’s diverse cloud offerings are likely to have helped it expand its clientele, resulting in top-line growth. The rapid adoption of the SaaS-based salesforce platform demonstrated solid demand for the company’s cloud-based solutions.

Further, enhancement of customer experience is likely to have aided growth of 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 Truth that helps connect all the data from across sales, service, marketing, commerce and build a single Salesforce ID for each customer is likely to have boosted its performance.

Additionally, the company’s initiatives to capitalize on overseas demand for cloud-based applications are likely to have lifted the top line.

Significantly, salesforce’s focus on building partnerships has not only helped it acquire new deals but also expanded its operations internationally, which in turn, is expected to have driven top-line growth.

Partnership agreements with the likes of Amazon (AMZN - Free Report) , International Business Machines (IBM - Free Report) , Microsoft, Apple, HP, Alphabet (GOOGL - Free Report) , Dell and others for the firms’ cloud services are likely to have aided its performance.

salesforce has 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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