Can Growing Partner Base Aid salesforce's (CRM) Q2 Earnings?
salesforce’s CRM second-quarter fiscal 2020 results are scheduled to be announced on Aug 21, which are likely to gain from the growing adoption of its cloud-based solutions.
To this end, the company has been benefiting immensely from its expanding partner ecosystem, which is contributing to business wins and boosting its presence globally.
Click here to know how the company’s overall Q2 performance is likely to be.
Partnerships to Boost Growth
salesforce’s upcoming quarterly results are likely to be driven by growth across all its four major cloud service offerings, namely Sales Cloud, Service Cloud, Platform and other plus Marketing & Commerce Cloud.
The company’s burgeoning partner base, which is aiding digital transformation of its customers, is likely to remain a key driver in this regard. Further, the rising uptake of its solutions among the partners is a positive.
During the fiscal second quarter, salesforce was chosen by the leading Japan-based property and casualty insurance provider Tokio Marine & Nichido Fire Insurance. The latter’s digital transformation with the company includes Salesforce Financial Services Cloud, Community Cloud, Einstein Analytics, Marketing Cloud, Pardot and the Salesforce Lightning Platform.
Further, Conagra Brands teamed up with salesforce to use Salesforce Sales Cloud, Service Cloud and Marketing Cloud along with the Salesforce Marketing Cloud Google Analytics 360 integration to boost digital transformation.
The company was also selected by Pacific Life, which will deploy Financial Services Cloud, Einstein Analytics, Einstein Data Discovery, Marketing Cloud, MuleSoft, Quip, the Salesforce Lightning Platform and Success Cloud advisory services.
Significantly, salesforce’s focus on building partnerships is not only helping it acquire new deals but also expanding its operations internationally, which in turn, is boosting its top-line growth.
The company’s partnerships with Dell DELL, IBM, Amazon AMZN and Alphabet GOOGL for its cloud services make us optimistic.
However, salesforce’s major outage and system failure in May 2019 may leave a negative impact on its results. Further, the intensifying competition from Microsoft and Adobe, which joined forces in March to take on salesforce, makes us apprehensive.
salesforce carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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