Salesforce announces layoffs, mocks Burry - but still looks better than rivals
CRM is laying off staff and closing its offices, but it is still far ahead of its competitors in many respects.
shutterstock.com - StockNewsRecently, CRM has addressed the issue of overspending, announcing job cuts and office closures to cut costs. It's clear the company is prioritizing its health and long-term prospects as it moves forward into the future. In response, famed marketer Michael Burry boldly stated, "CRM should have been down 25% on those job cuts. So the job cuts aren't the reason to own this."
>While Burry is correct that Salesforce is overvalued, the situation may look much bleaker for its competitors, the majority of whom have less revenue, less profit, and less market share. In this article, we'll take a look at CRM and some of its underlying fundamentals, as well as how it compares to one of its top competitors in the CRM space: Hubspot.
CRM vs Hubspot: Business DifferencesSalesforce is a cloud-based customer relationship management (CRM) platform. It helps businesses manage and track customer interactions, automate customer service tasks, and analyze customer data to create better customer experiences. It also allows companies to improve their marketing and sales capabilities, as well as facilitate communication and collaboration between teams. Hubspot, one of its main competitors, is also present in the field of customer relationship management, but while Salesforce mainly focuses on customer data, Hubspot mainly focuses on digital marketing, reporting and analysis.
Revenue differences in CRM and HubspotThe distribution and growth rate of net income (to common shareholders) for CRM and HUBS vary widely. CRM's trailing 12-month net profit (for common shareholders) rose sharply to over $4 billion in mid-2021, but has since fallen; it now stands at around $278 million. On the other hand, HUBS trailing twelve month net profit was -$110 million in the last quarter, compared to -$64 million in March 2021 – essentially a doubling of losses. If Salesforce, a profitable company, loses employees and offices in the face of a recession in an environment where fundraising is more difficult, the outlook for an unprofitable competitor with a smaller market share could be worse.
>The chart below shows revenue over time for CRM.
And here is the net income to common shareholders for Hubspot:
Net margin tells a similar story. For CRM, the net margin has declined since the summer of 2021, from almost 20% to its current level of almost 1%. Hubspot, meanwhile, saw its net margin drop from -4% to -7% this year. In summary, CRM may be in trouble, but it seems to be doing better than many of its competitors.
shares . Year-to-date, it's down -0.80%, versus a % rise in the benchmark S&P 500 over the same period.
Simit Patel has 2 decades of investment experience applying a top-down approach in starting with macroeconomics followed by technical analysis of price action to find more winning trades.
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Salesforce post announces layoffs, mocks Burry -- but still looks better than rivals appeared first on StockNews.com
CRM is laying off staff and closing its offices, but it is still far ahead of its competitors in many respects.
shutterstock.com - StockNewsRecently, CRM has addressed the issue of overspending, announcing job cuts and office closures to cut costs. It's clear the company is prioritizing its health and long-term prospects as it moves forward into the future. In response, famed marketer Michael Burry boldly stated, "CRM should have been down 25% on those job cuts. So the job cuts aren't the reason to own this."
>While Burry is correct that Salesforce is overvalued, the situation may look much bleaker for its competitors, the majority of whom have less revenue, less profit, and less market share. In this article, we'll take a look at CRM and some of its underlying fundamentals, as well as how it compares to one of its top competitors in the CRM space: Hubspot.
CRM vs Hubspot: Business DifferencesSalesforce is a cloud-based customer relationship management (CRM) platform. It helps businesses manage and track customer interactions, automate customer service tasks, and analyze customer data to create better customer experiences. It also allows companies to improve their marketing and sales capabilities, as well as facilitate communication and collaboration between teams. Hubspot, one of its main competitors, is also present in the field of customer relationship management, but while Salesforce mainly focuses on customer data, Hubspot mainly focuses on digital marketing, reporting and analysis.
Revenue differences in CRM and HubspotThe distribution and growth rate of net income (to common shareholders) for CRM and HUBS vary widely. CRM's trailing 12-month net profit (for common shareholders) rose sharply to over $4 billion in mid-2021, but has since fallen; it now stands at around $278 million. On the other hand, HUBS trailing twelve month net profit was -$110 million in the last quarter, compared to -$64 million in March 2021 – essentially a doubling of losses. If Salesforce, a profitable company, loses employees and offices in the face of a recession in an environment where fundraising is more difficult, the outlook for an unprofitable competitor with a smaller market share could be worse.
>The chart below shows revenue over time for CRM.
And here is the net income to common shareholders for Hubspot:
Net margin tells a similar story. For CRM, the net margin has declined since the summer of 2021, from almost 20% to its current level of almost 1%. Hubspot, meanwhile, saw its net margin drop from -4% to -7% this year. In summary, CRM may be in trouble, but it seems to be doing better than many of its competitors.
shares . Year-to-date, it's down -0.80%, versus a % rise in the benchmark S&P 500 over the same period.
Simit Patel has 2 decades of investment experience applying a top-down approach in starting with macroeconomics followed by technical analysis of price action to find more winning trades.
More...
Salesforce post announces layoffs, mocks Burry -- but still looks better than rivals appeared first on StockNews.com
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