Good news, startups: Q3 software results are changing the tech narrative


earlier this weekQuarterly results from public cybersecurity companies got us wondering why there isn’t more venture capital investment in security startups. In an environment where it is difficult to drive revenue, surely excellent technology sectors should sail with the wind if there is so much proven demand?

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This morning, I want to broaden my perspective and use a hold of new quarterly results from a more diverse group of companies to point out that things are not okay. really that bad For tech companies. New data from Salesforce, Zuora, Okta, Nutanix, and Snowflake makes it clear that many technology sectors are performing better than many expected.

Obviously, this has driven up the share prices of some major startup comparables, and has resulted in a better environment for tech valuations in general. Let’s talk turkey:

sales force

Salesforce reported revenue of $8.72 billion in its fiscal third quarter 2024, in line with analysts’ expectations. This led to a profit of 11% for the SaaS giant, which is not a surprising figure, especially as the company is expected to generate revenue of $9.18 billion to $9.23 billion in the current quarter, which represents an increase of almost 10%.

So why is Salesforce stock up more than 9% this morning? It beat profit expectations for the third quarter, reported fourth-quarter revenue largely in line with estimates, and raised its profitability forecast for its full fiscal year.

Salesforce is no longer the growth juggernaut it once was, but it is a cash-generating machine that is plowing its excess capital into buying back its stock, and investors are searching for improvements in its profitability.


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