This article is edited by CITIC's Salesforce.com Inc FY2021Q2 Review and CITIC's ZOOM FY2021Q2 performance Review.
Abstract: after Salesforce.com Inc, Saas's zoom performance greatly exceeded expectations, and once again raised the annual guidelines, the company's stock price soared, the market capitalization was close to 130 billion US dollars, and has risen by more than 570% so far. The sharp rise of zoom thoroughly ignited the enthusiasm of the market to be long Saas stocks, and SaaS shares collectively rose to a new high. Us SaaS stocks have overtaken semiconductors to become the strongest technology stocks.
Zoom led SaaS shares to rise to a new high.
ZOOM, the world's leading online videoconferencing company, released its FY2021Q2 financial data on Tuesday. Thanks to the demand for online meetings, the company's main indicators and guidelines for the quarter significantly exceeded market expectations.ZOOM shares rose 40% on the day, with a market capitalization of nearly $130 billion and up more than 570% year-to-date.
Coincidentally, Salesforce.com Inc, who announced the results before, also exceeded market expectations in terms of revenue and profit, causing the stock price to soar.
The surge of zoom completely ignited the enthusiasm of the market to be long Saas stocks. According to root Wind data, nearly 40 Saas stocks collectively hit a new high on Tuesday.DocuSign, the leader of the global electronic signature saas, which is expected to release its latest earnings report on Thursday, is up 20%, which is likely to be "snatched".
TOP10 shares hit a record high on Tuesday
Benefiting from the epidemic, Saas unit performance greatly exceeded expectations
The soaring share prices of zoom and Salesforce.com Inc are mainly driven by better-than-expected performance.
Data show that FY2021Q2zoom new customer demand explosive growth, the early retention of new users also exceeded expectations.Due to the telecommuting demand brought about by the continuation of the epidemic in North America, there was a significant increase in the number of new users and the expansion of stock users in the quarter. In this quarter, the company's enterprise users (employee size > 10) reached 370200 compared with the same period last year, and the number of customers with annual revenue contribution of more than $100000 reached 988 (year-on-year + 112%). The netdollarexpansionrate of customers (employee size > 10) was higher than 130% for 9 consecutive quarters, and the customer retention exceeded the previous management forecast.
Online education has also brought a lot of demand. This quarter, more than 35000 of vertical classes have adopted Zoom for teaching, leading to the rapid growth of educational users.At the same time, the introduction of major customers such as Exxon Mobil Corp, Blizzard and servicenow has also brought about improvements in customer structure.
The company raised its full-year guidance again after the first quarter, predicting FY2021 annual revenue of $237-2.39 billion (original guidance $17.75-1.8 billion), Non-GAAP operating profit of $7.3-750 million (original guidance $3.55-380 million), Q3 revenue of $6.85-690 million and Non-GAAP operating profit of $2.25-230 million.
The situation of Salesforce.com Inc is also similar.In fiscal year 2021, Q2's operating income was US $5.15 billion (+ 28.4%), exceeding market expectations and the upper limit of performance guidelines by about 5%, including subscription revenue of US $4.84 billion (+ 29.2%) and service and other business income of US $250 million (+ 23.4%).
In terms of orders, the company's current performance obligations (cRPO) are $15.2 billion (+ 26%) and remaining performance obligations (RPO) are $30.6 billion (+ 21%) in the quarter. The company expects cRPO to be $15.2 billion (+ 19%) in the next quarter, with medium-and long-term growth still clear.
Surpassing semiconductors, SaaS becomes the strongest technology stock
Technology stocks as a whole, mainly divided into hardware and software, from the market capitalization, the overall volume of software stocks is much larger than hardware stocks, and the best performance of software stocks in the last five years is SaaS. Over the past five years, US stocks ETF IGV (North American Software Services) have significantly outperformed the market, slightly better than the semiconductor SOX (Philadelphia Semiconductor Index).
Since 2013, the market capitalization / revenue growth of SaaS cloud computing companies in the US has been 543 per cent (578 per cent), significantly higher than that of traditional technology giants (84 per cent). In the same period, enterprises that successfully transformed cloud computing from their original business (443%) and semiconductor companies (307%).
This ETF has captured all the Saas stocks of the United States.
As shown above, there are many Saas companies in the US stock market. Which one should I buy? At the same time, I don't want to read the financial report very much. I just want to buy it and then go up. Okay, whenever I have that idea,There will be a magical ETF, this time the protagonist is WCLD$WISDOMTREE TRUST CLOUD COMPUTING FD (WCLD.US) $-Tracking NASDAQ emerging Cloud Index EMCLOUD(BVP Nasdaq Emerging Cloud Index) ETF.
WCLD's 90 per cent position is mainly concentrated in large and medium-sized companies. It is worth mentioning that although Saas stocks are good, they have risen too much recently, and investors should pay attention to the risk of chasing higher.
