CRM Salesforce Inc

Tech giants such as MongoDB (NASDAQ: MDB) and Salesforce (NYSE: CRM) reported quarterly earnings last week. While CRM stock declined over 4%, MDB stock was up 33% post-earnings. Let’s see why.

Salesforce stock is down 31% from an all-time high 

Salesforce scored higher on earnings and revenue than what Wall Street was expecting and even boosted its full-year earnings forecast. But Salesforce stock took a hit despite outpacing Wall Street estimates. 

HereU+02019s a quick breakdown of how SalesforceU+02019s numbers shaped up:

• Earnings: The company pulled in $1.69 per share (on an adjusted basis), which surpassed the anticipated $1.61 per share.
• Revenue: SalesforceU+02019s earnings clocked in at $8.25 billion, edging out forecasts of $8.18 billion.

But thereU+02019s a snag. Capital costs for the quarter ended up totaling $243 million. ThatU+02019s about a 36% increase, surpassing the $205 million figure that analysts were betting on. So even though the company saw an 11% revenue increase for the quarter, concerns about these rising costs cast a shadow over the good news.

Looking ahead to the second quarter, Salesforce predicts earnings of $1.89 to $1.90 per share (on an adjusted basis) and revenue in the ballpark of $8.51 billion to $8.53 billion. This forecast beats what analysts were expecting: $1.70 in adjusted earnings per share and $8.49 billion in revenue. 

Salesforce bumped up its earnings forecast for the fiscal year 2024 but left the revenue forecast as is. The company now expects $7.41 to $7.43 in adjusted earnings per share on $34.5 billion to $34.7 billion in revenue.

However, Salesforce has its challenges. According to COO Brian Millham, clients are taking their time with deals that are closing at a slower pace than before. As a result, Salesforce is now exploring ways to automate the selling process for smaller deals and boost productivity for their salespeople.

MongoDB stock is down 31% from record highs

After reporting knockout Q1 results and upping its full-year guidance, the stock surged by 22% in after-hours trading. HereU+02019s the lowdown:

• Earnings: MongoDB smashed it out of the park, bringing in 56 cents per share (adjusted) versus the 19 cents expected by analysts.
• Revenue: The company also outperformed here, hitting $368 million. Analysts had predicted a more modest $347 million.

So, whatU+02019s behind these top-tier results? Well, MongoDBU+02019s Q1 revenue soared by 29% year over year. The net loss shrank to $54 million, or 77 cents per share, a drop from the previous yearU+02019s $77 million, or $1.14 per share, despite a ramp-up in marketing, sales, and R&ampD expenditure.

The good news keeps coming - MongoDB gained 2,300 new customers in the quarter, boosting its total count to 43,100, which outperformed the Wall Street consensus of 42,430.

Another feather in MongoDBU+02019s cap came when China Mobile switched a service for sharing billing information from Oracle (NYSE: ORCL) to MongoDB. The move resulted in an 80% performance boost and reduced the number of servers from 50 to 12, according to CEO Dev Ittycheria.

MongoDB is calling for Q2 earnings of $0.43 to $0.46 per share on revenue between $388 million to $392 million. This forecast overshadows what analysts had expected, $0.14 in adjusted earnings per share and $362 million in revenue. 

MongoDB upped its fiscal 2024 forecast for both revenue and income. The company now projects $1.42 to $1.56 in adjusted earnings per share on revenue ranging from $1.522 billion to $1.542 billion.

Grafico Azioni Salesforce (NYSE:CRM)
Storico
Da Ago 2023 a Set 2023

Grafico Azioni Salesforce (NYSE:CRM)
Storico
Da Set 2022 a Set 2023