The March COVID-19 outbreak forced companies to actively move employees to remote work, leading to a surge in demand for appropriate tools.
Not surprisingly, the Direxion From Home ETF (NYSE:) launched in late June soared by about 17% and hit a record high on Tuesday.
However, this market is not limited to giants like Zoom Video Communications (NASDAQ:)., Slack Technologies (NYSE:), DocuSign (NASDAQ:), Twilio (NYSE:) and Crowdstrike (NASDAQ:). Today, we will look at three other high-tech companies that can take advantage of current trends.
Each of them will release a quarterly report in the coming weeks.
1. Citrix System articles Will report on October 22
Citrix Systems (NASDAQ:) has more than 100 million users in 400,000 organizations, an increase of about 30% this year. During the COVID-19 pandemic, the trend of telecommuting has stimulated demand for its services.
The technology company is headquartered in Fort Lauderdale, Florida and Santa Clara, California. It has developed VPN software that allows users to remotely access their work computers and networks through a secure connection.
At some point, the stock’s trading price was 55% higher than the beginning of the year. It closed at $144.03 on Tuesday. At these levels, Citrix is valued at approximately $18 billion.
Citrix confidently exceeded analyst expectations for the second quarter. The next financial report (for the third quarter) will be released before trading begins on October 22.
Analysts believe that earnings per share during the reporting period were $1.24. At the same time, revenues calculated at an annual rate should increase by 4% to 752.8 million US dollars.
With the shift from a licensing model to a more profitable subscription-based strategy, Wall Street investors will pay close attention to regular annual revenue (ARR) (up 54% year-on-year to $949 million in the previous quarter) and similar levels. The software as a service business grew 41% year-on-year to US$590 million.
In addition to bottom line and revenue data, market participants will also pay attention to Citrix’s forecast for this year and beyond. In the past quarter, the virtual machine software manufacturer estimated its revenue in fiscal 2020 to be between $3.18 billion and $3.21 billion (up from $3.01 billion in fiscal 2019).
2. Report Current service Will be released on October 28
This year, ServiceNow’s (NYSE:) stock rose more than the market, or nearly 84%. The reason is that investors are increasingly optimistic about the prospects of cloud software providers for workflow automation.
This Santa Clara, California-based company helps other companies track and manage their work processes. It also provides cloud-based task automation tools for IT, HR and customer service.
Yesterday, ServiceNow’s share price hit a record high of US$522.77 and subsequently closed at US$518.30. The market value of enterprise cloud software manufacturers is currently about $100 billion.
ServiceNow released a good report at the end of July, but the company’s own predictions disappointed market participants. The next version of the financial performance plan is released on October 28.
The consensus forecast assumes that the company’s earnings per share rose to $1.03 from $0.99 in the same period last year. Experts expect revenue to increase by 25% year-on-year to $1.11 billion. They refer to the surge in demand for remote working tools as drivers.
Therefore, investors will focus on ServiceNow’s corporate customer base to find answers to the question of whether the company can continue to win large contracts. In the second quarter, the company awarded 40 contracts with a net annual value of more than $1 million; in the previous reporting period, the number was 37.
3. Data dog Will report on November 5
Datadog (NASDAQ:) provides a monitoring and analysis platform for software developers and information technology departments. For the New York-based company, this year is a bumper year, and its customers include giants such as AT&T (NYSE:), FedEx (NYSE:) and Airbnb. Due to the growing demand for cloud-based surveillance solutions, its stock value has more than doubled.
The stock has risen 210% since the beginning of the year, hitting a record high of $118.10 yesterday, and then closing at $116.87. As a result, the rapidly growing monitoring and analysis platform provider is worth nearly $25 billion.
Datadog has confidently exceeded analyst expectations and issued an optimistic forecast that it will release its financial data after trading on November 5.
The consensus forecast assumes that earnings will increase by 100% year-on-year to $0.01 per share. At the same time, revenue should grow nearly 50% year-on-year to US$144.3 million. This reflects the strong demand for cloud-based tools during the COVID-19 period with the development of enterprise digitalization.
In addition to financial indicators, investors will also be interested in news about the number of new Datadog customers. The company reported 12,100 customers in its second quarter report, an increase of 37% over the same period last year.
Special attention will be paid to the dynamics of the number of customers who bring the company $100,000 or more each year. In the last reporting period, this indicator increased by 71% to 1015.
In addition, investors are interested in the details of the recently announced partnership between Datadog and Microsoft (NASDAQ:) in the field of cloud computing. As part of the deal announced last month, Microsoft customers will have access to the Datadog tool in the Azure Web portal. We believe that this transaction will have a positive impact on Datadog’s business and customer base.
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