233.83 -3.31 (-1.40%)
Before hours: 4:15AM EDT
|Bid||230.00 x 900|
|Ask||233.83 x 800|
|Day's range||237.13 - 242.52|
|52-week range||115.29 - 284.50|
|Beta (5Y monthly)||1.27|
|PE ratio (TTM)||91.52|
|Earnings date||01 Dec 2020 - 07 Dec 2020|
|Forward dividend & yield||N/A (N/A)|
|1y target est||277.34|
Salesforce.com (CRM) closed at $237.14 in the latest trading session, marking a -0.54% move from the prior day.
(Bloomberg) -- ServiceNow Inc. projected subscription sales in the current quarter that narrowly topped Wall Street estimates, signaling that companies are continuing to invest in upgrading their business workflow software while employees remain stuck at home.Subscription revenue will be $1.15 billion to $1.16 billion in the period ending in December, the Santa Clara, California-based company said Wednesday in a statement. Analysts, on average, estimated $1.13 billion. The company raised its fiscal-year subscription sales forecast to as much as $4.26 billion from about $4.23 billion.Chief Executive Officer Bill McDermott has pledged to turn 17-year-old ServiceNow into a “software juggernaut.” The company has a plan to reach $10 billion in revenue, on an unspecified time frame, from selling applications that help companies organize their personnel, customer service and IT operations and transition to more online work. Like rival Salesforce.com Inc., ServiceNow has offered clients a set of software tools to help them safely return to their offices during the coronavirus pandemic. The National Basketball Association and Women’s National Basketball Association used the company’s applications to resume their seasons during the pandemic, McDermott said on a call with analysts. The U.S. Senate, U.S. Air Force and U.S. Department of Veterans Affairs also signed deals with ServiceNow in the third quarter, he said.“The reality is, others came into the market with good marketing; we came into the market with a great product that was ready to implement in minutes,” McDermott said in an interview. “That’s why we have thousands and thousands of downloads, hundreds of customers and we’re operating at mass scale.” Uber Technologies Inc. selected ServiceNow because it needed a system up and running in two weeks and no other software maker could do that, he added.Salesforce has said its product, called work.com, is being used by 60 government customers worldwide, including 35 U.S. state agencies and federal agencies including NASA.In the third quarter, ServiceNow reported subscription revenue increased 31% to $1.09 billion, compared with analysts’ estimate of $1.06 billion. Total sales increased 30% to $1.15 billion in the period ended Sept. 30. Profit, excluding some items, was $1.21 a share. Analysts projected $1.03.McDermott said companies are using ServiceNow’s software to address a variety of needs, even in the face of business slowdowns during the pandemic, which has forced them to change “on the fly.”“You’re hiring people, you’re on-boarding people, you need to train people, you need to provide people a self-service employee experience on mobile,” the executive said. “And by the way, you actually need to keep them safe if you do give them the option of coming into the office.”Shares rose more than 2% in extended trading after closing at $484.05 in New York. The stock has climbed 71% this year.ServiceNow also appointed Apple Inc. executive Larry Jackson to its board of directors, now enlarged to 11 seats. Jackson, the global creative director of Apple Music, will be ServiceNow’s first Black director. McDermott said in a statement that Jackson would bring a focus on customer experience to the board.The software maker earlier Wednesday said it named Gabrielle Toledano, previously of Keystone Strategy LLC and Comcast Ventures, as chief talent officer effective in January.(Updates with comments from CEO starting in the fifth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Dire earnings results at SAP SE wiped out more than 35 billion euros ($41 billion) from the German software company’s market value in a matter of minutes, sending a warning to tech investors about the health of the business software industry.In a surprise release late Sunday, SAP, one of Europe’s largest tech companies, cut its revenue forecast for the full year and said it expected the fresh wave of Covid-19 lockdowns to hurt demand through the first half of 2021. The results caused shares to fall the most ever in a single day, according to data compiled by Bloomberg since 1989.SAP’s collapse caused the wider tech market to drop, with Europe’s Stoxx Technology index falling 7.6%, its biggest one-day loss since March. Shares of cloud-applications giant Salesforce.com Inc. fell 4.1% at 2:28 p.m. in New York. Oracle Corp. -- SAP’s main rival -- dropped 3.9%.“SAP is a bellwether stock for European technology and global software,” said Citigroup Global Markets analyst Amit Harchandani. “They have an insight into Fortune 500 companies and when SAP tells you they see headwinds, there will be some truth to the fact that some of the customers are challenged and don’t have the money to spend.”For some investors, SAP’s results have called into question the wider assumption that software companies will prosper during the pandemic, due to millions of employees working from home. Many of these companies, which deliver applications or services over the internet, have so far resisted the worst effects of a pandemic-fueled recession, and some have thrived while businesses operate remotely.Some major SAP clients may be reconsidering signing large contracts to update their software, as the pandemic continues to limit any global economic recovery. SAP has a wide range of products, many of which rely on winning and renewing major new deals for databases, as well as accounting, expenses or human resources software. Unsurprisingly, SAP said business travel had been particularly hard hit over the past quarter.Still, SAP has fared worse during the pandemic than many of its software peers. The company said in April that the virus had hindered new business, prompting worries that software vendors around the world might underperform. A few companies later weakened their forecasts, but most reported healthy growth. More recently, San Francisco-based Salesforce said in August that revenue climbed 29% to $5.15 billion in the previous quarter, and raised its revenue projection for the year.SAP’s poor results and weak outlook may suggest that a recovery for vendors of on-premise software -- based on a company’s own network rather than on the internet -- could take longer than anticipated, as clients continue to delay major IT upgrades, analysts at Citi wrote in a note Monday.Oracle, based in Redwood City, California, may be more affected than cloud-based providers since it offers database and financial-planning tools like SAP, and has a large base of customers who buy software for their own server farms. Last month, Oracle reported a return to sales growth in the previous quarter after years of largely stagnant revenue expansion, due to rising demand for its cloud-based products and falling interest in everything else. Oracle projected its sales would grow 1% to 3% in the current period.“The bigger surprise to us was the sharp deceleration in [SAP’s] cloud backlog numbers,” said Anurag Rana, analyst at Bloomberg Intelligence. “Given that Workday and Salesforce.com had good quarters with healthy pipelines, it seems that could be losing share to pure-play cloud vendors, which would make it hard for them to attain any meaningful recovery in the near-term.”Investors now have an anxious wait before the major U.S. cloud software providers such as Salesforce, Workday Inc. and Oracle announce earnings in December.(Corrects spelling of analyst in 10th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.