SaaS Q3 bonanza🤯: Salesforce // Snowflake // Elastic......

This is the Cloudly Update. Helping you stay above the Clouds.

Today we bring you a total Q3 SaaS earnings bonanza with comments on Salesforce, Snowflake, Elastic, Okta, Asana, Veeva Systems, PagerDuty, Zscaler, UiPath, Smartsheet, nCino, Box, and Pure Storage. Enjoy!

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Salesforce records solid revenue growth and earnings (3 minutes read)

The global leader in CRM, Salesforce, announced strong third-quarter fiscal 2023 results. Their non-GAAP EPS was at $1.40, $0.18 better than the S&P Capital IQ Consensus of $1.22. GAAP EPS was reported at $0.21.

Revenues rose 14.2% year-on-year to $7.84 billion vs. the $7.83 billion S&P Capital IQ Consensus. Subscription and support revenues were $7.23 billion, an increase of 13% year-on-year.

Remaining Performance Obligation (RPO) ended Q3 at $40.0 billion, an increase of 10% year-on-year. Current RPO ended at $20.9 billion, an increase of 11% year-on-year, and 15% CC.

Salesforce issues guidance for Q4 (Jan), sees EPS of $1.35-1.37, excluding non-recurring items, vs. $1.35 S&P Capital IQ Consensus. They expect Q4 revenue of $7.932-8.032 billion vs. $8.04 billion S&P Capital IQ Consensus.

For the full year FY23, revenue guidance is $30.9 to $31.0 billion, up 17% Y/Y and 20% CC.

Bret Taylor leaving Salesforce (2 minutes read)

Salesforce revealed that co-Chief Executive Bret Taylor is leaving the company, and Salesforce shares fell about 7% after hours on the day of the announcement.

Founder, co-CEO, and Chairman Marc Benioff will resume the sole CEO role on January 31.

Taylor is the second executive to be elevated to co-CEO with Benioff and served Salesforce for six years.

This may bring up a lot of questions on the management team and may offset positive narratives around margins in 2023.

Snowflake beats expectations, reports 67% growth in Q3 revenue (3 minutes read)

Snowflake, the Data Cloud company, reported Q3 of the fiscal year 2023. Revenue for the quarter was $557.0 million, representing 67% year-over-year growth. Market expectations of their revenue were $538.91 million.

Earnings of $0.11 per share were reported (excluding non-recurring items), $0.06 better than the S&P Capital IQ Consensus of $0.05. Their non-GAAP product gross margin was at 75%.

Product revenue growth was 67% year-on-year and was recorded at $522.8 million. The net revenue retention rate was 165% as of October 31, 2022. Remaining performance obligations of $3.0 billion were reported, representing 66% year-over-year growth.

The company reported 287 customers with trailing 12-month product revenue greater than $1 million.

Snowflake sees 46-50% year-on-year growth in Q4 Product revenue between $535-540 million. They expect Product revenue for FY23 in the range of $1.919-1.924 billion, up 68-69% year-over-year.

Elastic Q2 Snapshot (3 minutes read)

Elastic reports 28.4% year-on-year Q2 growth in total revenue. It was recorded at $264.4 million vs. the $261.64 million S&P Capital IQ Consensus. Elastic Cloud revenue was $103.2 million, an increase of 50% year-over-year, or 52% on a constant currency basis.

Non-GAAP earnings per share were $0.00, $0.10 better than the S&P Capital IQ Consensus of ($0.10)

The total customer count with ACV greater than $100,000 was over 1,050 vs.1,010 in Q1 FY23.

Company issues mixed guidance for Q3 and see EPS of $0.04-0.07 (excluding non-recurring items) vs. ($0.03) S&P Capital IQ Consensus. They expect Q3 revenue of $272-274 million vs. $277.69 million S&P Capital IQ Consensus.

Elastic also announces a selective reduction in its workforce and facilities-related cost optimization actions. They expect improvement in non-GAAP operating income in the second half of fiscal 2023 and see a non-GAAP operating margin of 10% in fiscal 2024 with these changes.

Elastic sees EPS for full year FY23 of $(0.03)-0.03, (excluding non-recurring items) vs. ($0.28) S&P Capital IQ Consensus. They expect FY23 revenue in the range of $1.067-1.073 billion vs. $1.08 billion S&P Capital IQ Consensus.

Okta announces third quarter earning report (3 minutes read)

Okta Q3 total revenue rose 37% year-over-year to $481 million vs. market expectations of $465.37 million. Subscription revenue was $466 million, an increase of 38% year-over-year.

Non-GAAP basic and diluted net loss per share was $0.00, $0.24 better than the S&P Capital IQ Consensus of ($0.24). It was $0.07 in Q3 2022.

RPO (Remaining Performance Obligations), or subscription backlog, was $2.85 billion, an increase of 21% year-over-year. cRPO (current remaining performance obligation), which is contracted subscription revenue expected to be recognized over the next 12 months, was $1.58 billion, up 34% compared to the third quarter of fiscal 2022.

37% year-over-year growth was recorded in total calculated billings and was at $532 million.

Okta issues guidance for Q4 sees EPS of $0.09-$0.10 vs. ($0.12) S&P Capital IQ Consensus. And sees Q4 revenue of $488-$490 million vs. $488.71 million S&P Capital IQ Consensus.

The company expects 41% year-over-year growth & total revenue of $1.836 billion to $1.838 billion for the full year 2023. And sees a non-GAAP net loss per share of $0.27 to $0.26.

Asana reports 41% revenue growth in third quarter, but cuts guidance in coming quarter (3 minutes read)

Asana reported a non-GAAP loss of $(0.26) per share, $0.06 better than the S&P Capital IQ Consensus of $(0.32). Revenues rose 41.0% year-on-year to $141.44 million vs. market expectations of $139.02 million.

The number of customers spending $5,000 or more on an annualized basis in Q3 grew to 18,700, an increase of 32% year over year. Revenues from these customers in Q3 grew 52% year-over-year. The number of customers spending $100,000 or more on an annualized basis grew 78% yearly to 493.

Overall dollar-based net retention rate in Q3 was over 120%.

Asana issues mixed guidance for Q4 and sees EPS between $(0.28)-$(0.27), excluding non-recurring items, vs. $(0.29) S&P Capital IQ Consensus. The company expects Q4 revenue of $144-146 million vs. $151.12 million S&P Capital IQ Consensus.

Dustin Moskovitz, co-founder and CEO of Asana, said, "While macroeconomic cross currents continue to impact the business in the near term, our leading technology and strong brand position us well in the enormous and untapped Work Management market over the long term."

Veeva Systems earnings beat estimates; Issues downside guidance(3 minutes read)

A leading cloud solutions provider for the global life sciences industry, Veeva Systems, reported non-GAAP earnings of $1.13 per share, $0.06 better than the S&P Capital IQ Consensus of $1.07.

Total revenue was $552.4 million, an increase of 16% year-over-year vs. analysts’ expectations of $546.06 million. Subscription services revenue was recorded at $441.6 million, up from $380.7 million one year ago, an increase of 16% year over year.

Veeva issued downside guidance for Q4 and sees EPS of approximately $1.05, excluding non-recurring items, vs. $1.08 S&P Capital IQ Consensus. They expect Q4 revenue of $551-553 million vs. $557.00 million S&P Capital IQ Consensus.

Company updated guidance for its fiscal year ending January 31, 2023. Total revenues are expected between $2,143 and $2,145 million, and non-GAAP EPS of approximately $4.19.

PagerDuty revenue beats estimates, tops EPS by 8 cents (3 minutes read)

A leader in digital operations management, PagerDuty, reported EPS at $0.04, $0.08 better than the S&P Capital IQ Consensus of ($0.04). 31.2% year-on-year revenue growth was recorded at $94.2 million, beating market expectations of $92.93 million.

Total paid customers were 15,265 in Q3 compared to 14,486 in the year-ago period. Reported 710 customers with annual recurring revenue over $100,000 as of October 31, 2022, compared to 543 in the year-ago period.

Dollar-based net retention rate was 123% vs 124% in Q3 last year.

Achieved non-GAAP profitability a quarter ahead of previous guidance, expanding non-GAAP operating margin to 3%. An improvement of 1,000 basis points was recorded over the year-ago period.

PagerDuty issued guidance for Q4, seeing EPS of $0.02-$0.03 vs. $0.00 S&P Capital IQ Consensus. The company expects Q4 revenue of $98-$100 million vs. $99.07 million S&P Capital IQ Consensus.

For the full fiscal year 2023, PagerDuty expects a 31% yearly growth in total revenue between $368.0 - $370.0 million. And sees a non-GAAP net loss between $0.01 - $0.00.

Zscaler announces first quarter earnings (3 minutes read)

Zscaler, the leader in cloud security, reported earnings of $0.29 per share, $0.03 better than the S&P Capital IQ Consensus of $0.26. Revenue rose 54.2% yearly to $355.5 million vs. market expectations of $340.79 million. Non-GAAP net income was $44.0 million compared to $21.0 million on a year-over-year basis.

Calculated billings grew 37% year-over-year to $340.1 million. Deferred revenue grew 55% yearly to $1,005.7 million.

Zscaler issues upside guidance for Q2 and sees EPS of $0.29-$0.30 vs. $0.26 S&P Capital IQ Consensus. The company expects Q2 revenue between $364-$366 million vs. $355.38 million S&P Capital IQ Consensus.

Zscaler issued upside guidance for FY23, seeing EPS of $1.23-$1.25 vs. $1.17 S&P Capital IQ Consensus. Expects FY23 revenues of $1.525-$1.530 billion vs. $1.5 billion S&P Capital IQ Consensus. Zscaler expects calculated billings of $1.930 to $1.940 billion. The first half mix of billings is to be approximately 43% of the full year.

UiPath Q3 Financial Results (3 minutes read)

UiPath posted its revenue grew 19 percent year-over-year and reached $262.7 million against market expectations of $255.94 million. Adjusted EPS was $0.05 against the market expectations of $(0.01).

UiPath recorded a 36 percent year-over-year growth in its ARR that landed at $1.110 billion in Q3. This included a new ARR of $66.8 million. NDR was 126%.

GAAP operating loss was $(67.0) million. However, the adjusted operating income was $18.0 million.

The company reported a negative cash flow of $24.1 million (Non-GAAP). The cash equivalents and marketable securities they held were worth $1.7 billion as of October 31, 2022.

Smartsheet Q3 earnings (3 minutes read)

Smartsheet, the enterprise platform provider for modern work management, announced 38.0% year-on-year revenue growth at $199.6 million vs. market expectations of $194.34 million. Subscription revenue was $186.1 million, a 40% yearly increase.

Smartsheet reported a loss of $(0.01) per share, excluding non-recurring items. But it was $0.14 better than the S&P Capital IQ Consensus of $(0.15).

The number of customers with annualized contract values (ACV) of $100,000 or more grew to 1,346, an increase of 55% year over year. 43% yearly increase in ACV of $50,000 or more customers at 2,962. And a 23% yearly increase in ACV of $5,000 or more customers recorded at 17,446. The average ACV per domain-based customer increased to $7,951, an increase of 25% year over year.

The dollar-based net retention rate was recorded at 129%. Calculated billings were $219.6 million, representing year-over-year growth of 36%.

Smartsheet issued upside guidance for Q4, sees EPS of $(0.02)-$0.00, excluding non-recurring items, vs. $(0.09) S&P Capital IQ Consensus. The company expects Q4 revenue of $205-207 million vs. $204.45 million S&P Capital IQ Consensus.

nCino records strong revenue growth in Q3 (2 minutes read)

nCino, a cloud banking and digital transformation solutions provider, posted the first quarter of non-GAAP operating income ($2.5 million) as a public company. Total revenues for the third quarter of 2023 were $105.3 million, a 50% increase from $70.0 million in Q3 2022.

Subscription revenues were $88.3 million, up from $57.1 million a year ago, an increase of 55%. Organic subscription revenues were $72.9 million, a 28% increase from Q3 2022.

Non-GAAP net loss attributable was ($0.01) per share compared to ($0.04) per share in Q3 2022.

Total Remaining Performance Obligation (RPO) as of October 31, 2022, increased by 28% yearly and was $919.2 million.

nCino expects total revenues between $104 and $105 million in Q4. And expects a non-GAAP net loss between ($0.04) and ($0.05).

Box Delivers first $1 billion Revenue Run Rate quarter (3 minutes read)

Box, the leading Content Cloud, reported earnings of $0.31 per share, excluding non-recurring items, $0.01, better than the S&P Capital IQ Consensus of $0.30. Revenue rose 11.6% year-on-year to $249.95 million, or 17% growth on a constant currency basis. The market expectation of their revenue was $251.67 million.

RPO (Remaining performance obligations) as of October 31, 2022, were $1.056 billion, an 11% increase of $948.1 million year-on-year, or 20% growth on a constant currency basis.

GAAP gross profit was $185.5 million, or 74.2% of revenue. Non-GAAP gross profit was $191.2 million, or 76.5% of revenue.

Box Directors authorized an expansion of the company’s stock repurchase program by $150 million on November 29, 2022.

Box issued mixed guidance for Q4 and sees EPS of $0.34-0.35, excluding non-recurring items, vs. $0.33 S&P Capital IQ Consensus. They expect Q4 revenue between $255-257 million vs. $259.21 million S&P Capital IQ Consensus.

Box issued mixed guidance for FY23 and sees EPS of $1.16-1.17, excluding non-recurring items, vs. $1.15 S&P Capital IQ Consensus. They expect FY23 revenue in the range of $990-992 million vs. $994.33 million S&P Capital IQ Consensus.

Pure Storage third quarter revenue beats market expectations, tops EPS by 6 cents (3 minutes read)

Pure Storage, the advanced data storage technology and services provider, announced a 20.1% year-on-year revenue increase in the third quarter. Revenue rose to $676 million vs. $672.08 million market expectations. Subscription Services revenue was $244.8 million, up 30% year-over-year.

EPS was $0.31, $0.06 better than the S&P Capital IQ Consensus of $0.25.

Subscription Annual Recurring Revenue (ARR) increased 30% year-over-year at $1.0 billion. Remaining Performance Obligations (RPO) was $1.6 billion, up 26% year-over-year

The non-GAAP gross margin was 70.9%. Non-GAAP operating income was recorded at $107.2 million.

Pure Storage issues in-line guidance for Q4 and sees Q4 revenue of approximately $810 million vs. $812.67 million S&P Capital IQ Consensus. It expects a non-GAAP operating income of $130 Million with a non-GAAP margin of 16.0%.