DA Davidson On Salesforce.com: 'The Most Important Earnings Report in the History of SaaS?'

Salesforce.com, Inc. (NYSE: CRM) is scheduled to report earnings for the fourth quarter of fiscal 2015 on Wednesday after market close. In a report published Tuesday, DA Davidson’s Jack Andrews provided a preview of the call, wondering if this might be “the most important earnings report in the history of SaaS.”

The firm expects fourth-quarter revenue to grow 25.8 percent year-over-year to $1.441 billion. The estimate is in line with the Street consensus of $1.44 billion. For the full year (fiscal 2015), the analysts model revenue of $5.37 billion is also in line with consensus. Both of these are at the high end of the company’s guidance, which calls for revenue in the $1.436-$1.441 billion range for the quarter, and in the $5.365-$5.370 billion for the full year.

Related Link: Wedbush: Salesforce.com 'Needs Large Deals To Return To Form'

Fourth quarter non-GAAP EPS are expected at $0.14 (in line with the Street), doubling the figure for the same quarter a year ago. For the full year, the firm is modeling earnings of $0.52 per share, also in line. Moreover, the report noted that Salesforce.com “has met or beaten consensus revenue and EPS estimates in each quarter for at least the past six years.”

Other key points in DA Davidson’s report include billings expected to grow faster than revenue and the U.S. dollar appreciation as a potential risk.

The report pointed out some “key areas of focus for the call, [which] include large deal activity, customer metrics around the new Wave analytics cloud product, progress on international expansion, and CRM’s efforts to build vertical teams and solutions. Historically, FY4Q’s have been CRM’s strongest quarter for both new business and renewals.”