Wednesday's Headlines: A Record Quarter For Salesforce

Wednesday's Headlines: A Record Quarter For Salesforce

Morning folks! Did anyone get yesterday’s puzzle?

The answer was Teleconferencing.

See if you can figure out today’s puzzle, and let us know @MyWallStHQ if you think you’ve got it.

Buyer Icy Crest

Hint: It provides protection for digital businesses.

We’ll reveal the answer in tomorrow’s headlines.

Here were the biggest movers in the MyWallSt shortlist yesterday:

Moving Up ⬆️

Workday (WDAY) +4.9%

Coupa Software (COUP) +4.4%

nCino (NCNO) +3.9%

Evolent Health (EVH) +2.8%

2U (TWOU) +2.7%

Moving Down ⬇️

Sea Limited (SE) -13.1%

Bumble (BMBL) -8.9%

Upstart Holdings (UPST) -8.0%

Silicon Valley Bank (SIVB) -7.9%

Zoom Communications (ZM) -7.4%

1. Shares of Salesforce (CRM) are up pre-market in what CEO Mark Benioff says might have been the “best quarter we’ve ever had”. A record $7.3 billion in total revenue was reported — a 26% increase year-over-year (YoY) — and $26.5 billion was posted for the full year. Guidance was beyond expectations too, with Salesforce forecasting $32 billion in total revenue for the upcoming fiscal year 2023. Co-Chief Executive Bret Taylor remarked on its strategic acquisition of Slack which continues to drive growth, “exceed our expectations in every way,” and stated that it’s “setting up for the future of work” when referring to its communications arm. Read the full press release here.

2. Sea Limited (SE) shares sank 13% yesterday on an earnings per share (EPS) miss despite no drop-off in top-line growth. Total revenue surpassed estimates of $2.9 billion, coming in at $3.1 billion, but EPS was an adjusted loss of $0.88 v.s. $0.59 expected. Sea’s e-commerce division Shopee decided to pull out of France after an initial launch — assuring all existing orders will be completed — but sets its sights on increasing brand presence in South America. Sea’s continued expansion in the region shows great promise, with gross orders in Brazil growing 400% YoY. Similarly, triple-digit revenue growth of 711% was seen across its financial services division, Sea Money, with an 89.7% growth in quarterly active users to 45.8 million people. For an overview of the full results, and a comment from our analyst team, check out our breaking news story here.

3. Nordstrom (JWN) shares received a healthy 30% boost after-hours following its quarterly numbers, partly driven by a significant short interest in its float. Vendor partnerships — which made up 10% of sales — along with the introduction of 300 new brands and continued growth in its digital sales category, contributed to $4.9 billion in total revenue, which beat analyst estimates of $4.35 billion. For the upcoming year, Nordstrom has guided for between 5% and 7% sales growth which far-exceeded forecasts of just 3.7%. CEO Erik Nordstrom highlighted the key areas of focus now as “improving Nordstrom Rack performance, increasing profitability and optimizing our supply chain and inventory flow.” Read the full press release here.

Some more earnings from last night:

Huazhu Hotels (HTHT) revenue per available room (RevPAR) has recovered to just shy of 2019 levels; 90%, 76%, and 90% for October, November and December, respectively. However, it continues to suffer from pandemic-induced restrictions in Europe, as well as new COVID variants being detected in China which has dampened the outlook for Q1 2022. Read the full press release here.

The Howard Hughes Corp (HHC) reported net income of $56.1 million in its quarterly results last night, far above the net loss of $26.2 million in the same period last year. CEO David R. O’Reilly stated “All of our segments met or exceeded guidance for the full year, and we expect this momentum to carry into 2022”. Read the full press release here.

Just two companies on the MyWallSt shortlist will report earnings today:

Pure Storage (PSTG)
Veeva Systems (VEEV)

Get this week’s full earnings calendar here. 

David GranahanDavid Granahan

Sign up for free to continue reading.