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The firm anticipates a slight improvement in revenue, billings, and profitability, driven by investor focus on stabilizing growth and increasing margins.
Similar to the previous quarter, macroeconomic factors are expected to continue exerting pressure on cloud consumption trends as customers optimize their cloud usage. As such, the firm thinks fiscal 2024 revenue growth guidance is maintained, while profitability may see an upward trend.
Preliminary 2024 revenue guidance calls for mid-to-high-teens growth, indicating a deceleration compared to the +24% and +28% cc revenue growth guidance in 2023.
RBC Capital believes this conservative approach incorporates an appropriate level of caution, as estimates are likely to reach their lowest point in 2024, with the potential for a rebound in 2025.
