Salesforce - Is this CRM SaaS back from a sell-off?

Yet after a tough sell-off last year, the stock is back, up by 57% YTD.

So the question is, what made it rebound and does it still have legs to run?

Here are 3 points to take note of based on their latest Q1'24 financials

Total revenue grew at a modest 11% YoY.

Operating margin improved by 470 bps to 5%, helping the company achieve diluted earnings per share of USD 0.20 per share.

Operating cash flow improved by 22%, to USD 4.49 billion, while free cash flow also grew 21% YoY to USD 4.25 billion.

Salesforce started off with just their CRM and sales verticle, but has soon grown into multiple verticals after successful acquisitions.

All 5 verticals, Sales, Service, Platform and other, Marketing and Commerce and Data all posted growth, albeit at different rates.

Q2'24 and FY'24 revenue guidance is at a targeted YoY growth of ~10%.

After a strong USD which impacted FX affects in previous FY, this time around it shouldn't be too much of an impact.

GAAP earnings per share will be in the range of USD 2.64 and USD 2.69.

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