Cloud Earnings Highlights: Salesforce (CRM), Workday (WDAY), Veeva Systems (VEEV)

Tom Paine

Salesforce slightly beat expectations for Q1 of its 2021 fiscal year, reporting net income of 70 cents per share on revenue of $4.87 billion, up 30% from the prior year. The company dropped its revenue forecast for the full year by $1 billion to $20 billion.

Salesforce expects earnings between $2.93 and $2.95 per share, down from previous expectations 0f $3.10 per share.

Salesforce’s deal with AT&T (Wireless) is one of the ‘largest transactions we’ve ever done,’ says Salesforce CEO Marc Benioff.

Workday showed profits of 44 cents per share (excluding certain items) on revenue of $1.02 billion, up 23% from a year ago. It also lowered its forecast for the year.

Workday will offer a new integration with Salesforce’s Work.com to help joint customers plan for the safe reopening of their workplaces in the wake of the COVID-19 pandemic.

I find it intruiging to see the two companies working together, and wonder if that collaboration might lead to bigger thing in the future.

Pleasanton, CA-based Veeva Systems, Inc., with east coast offices in Radnor, had a tremendous start to its fiscal year 2021. Revenue was up 38% from the prior year to $337.1M, while net income was $86.6 million, up 18%. Veeva benefited from customer activity created by Covid-19, the general pace of change in the industry, and the continued fleshing out of its product line.

Matt Wallach, who retired from his role as president of Veeva Systems as of June 2019, returned as a non-managerial board member in January as planned. Wallach is also involved in the startup community, such as serving on the board of HealthVerity.

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