Remaining News of the Week (February 24-28, 2025)

Remaining News of the Week (February 24-28, 2025)

9 min read

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Table of Contents

1. Earnings snapshots – Salesforce, Axon, Workday & Dell

a. Salesforce (CRM)

Demand:

  • Missed revenue estimates by 0.5%.
  • Slightly beat Current Remaining Performance Obligation (cRPO) estimates by 0.2%.

Profits & Margins:

  • Slightly beat EBIT estimates.
  • Beat FCF estimates by 9%.
  • Beat $1.61 GAAP EPS estimates by $0.14.
  • Beat $2.61 EPS estimates by $0.17.

Balance Sheet:

  • $14B in cash & equivalents. 
  • $4.85B in strategic investments
  • $8.43B in debt.
  • Diluted share count fell by 1% Y/Y.
  • Paid out $1.54B in dividends for the year vs. $0 Y/Y.

Guidance & Valuation:

  • Annual revenue guidance missed by 1.6%.
  • Annual EBIT guidance missed by 1.4%.
  • Annual EPS guidance of $11.13 missed by $0.08.
  • Annual 10.5% operating cash flow guidance beat 9.5% growth estimates.
  • Q1 guidance was similarly light across the board for revenue, EBIT and EPS.

CRM trades for 26x forward EPS. EPS is expected to grow by 10% this year and by 13% next year.

b. Axon (AXON)

Demand:

  • Revenue beat by 1.5%
  • Taser revenue beat by 4%.
  • Cloud & services revenue beat by 3%.
  • Sensors & other revenue missed by 6.5%.

Profits & Margins:

  • Beat 72% GPM estimates by 120 bps (chart below is GAAP GPM).
  • Beat EBITDA estimates by 6%.
  • Beat $1.40 EPS estimates by $0.68.
  • Beat FCF estimates by 85%.

Balance Sheet:

  • Nearly $1B in cash, equivalents & investments.
  • $680M in convertible notes.
  • No traditional debt.

Guidance & Valuation:

  • Annual revenue guidance beat by 1.8%.
  • Annual EBITDA guidance beat by 3.6%.

Axon trades for 60x 2025 EBITDA. EBITDA is expected to compound at a 26% clip for the next two years.