Earnings from Salesforce and Okta

$CRM Salesforce is going to report its 2025 Q3 earnings after hours. 

Consensus revenue: $9.3B (+7.19% YoY)

EPS estimates: $2.45 (+15.92% YoY)

The following is the Q3 revenues reported by $CRM since 2004:

Salesforce's ($CRM) revenue has shown a consistent upward trend since 1999.

In Q3 of 2024, the revenue appears to be just under $10 billion, as indicated by the bar reaching close to the $10,000,000,000 mark on the y-axis.

The growth trajectory suggests a significant increase over the years, with a marked rise starting around 2015.

The trend indicates a steady expansion in revenue, likely due to an increased customer base, expanded services, or acquisitions.

$OKTA is going to report its earnings after hours.

Consensus revenue: $649.64M (+11.24%YoY)

EPS estimate: $0.584 (+32.60% YoY)

The charts below show the Q3 revenues and EPS for $OKTA since 2016. 

The revenue indicates consistent revenue growth, with a steep incline in recent years.

For the first time, there is a positive projection (represented in pink). This marks a significant improvement.

YTD it is down 10%. I am hoping for a jump after earnings.

EV/EBITDA against EBITDA Margin for Tech companies

EV/EBITDA against EBITDA Margin % can provide insight into a company's valuation, operational efficiency, and market perception. 

EV/EBITDA is used to compare the value of a company, including debt, to its cash earnings minus non-cash expenses.

EBITDA Margin % shows how much of each dollar of revenue is converted into EBITDA, which indicates operational efficiency and profitability.

High EV/EBITDA with High EBITDA Margin: This suggests a company is both profitable and highly valued by the market, potentially due to strong growth prospects or market dominance. 

High EV/EBITDA with Low EBITDA Margin: Could imply that the market is betting on future improvements or growth, despite current inefficiencies or lower profitability. $NVDA, $AMD

Low EV/EBITDA with High EBITDA Margin: Might indicate an undervalued company with good operational efficiency but possibly overlooked by the market, or it could reflect concerns about future growth or industry downturns. $AVGO, $TXN

Low EV/EBITDA with Low EBITDA Margin: This suggests a company that's both undervalued and operationally inefficient, potentially a distressed asset or one in a declining industry. $INTC, $ACN

This comparison can guide investment decisions:

Value Investing: Look for low EV/EBITDA companies with improving or already high EBITDA margins as potential undervalued opportunities. $QCOM, $CSCO, $AMAT, $LRCX, $NXPI, $AAPL.

Growth Investing: High EV/EBITDA might be justified if coupled with improving EBITDA margins, signaling operational leverage and growth. $CDNS, $ADBE.