RBC Capital Markets Software Equity Analyst Rishi Jaluria joins Yahoo Finance to discuss his positive outlook on upcoming Salesforce (CRM) earnings.

Jaluria tells Julie Hyman and Josh Lipton that he is "breathing a sigh of relief as a Salesforce bull" after hearing the potential acquisition of Informatica (INFA) has reportedly fallen through. He points to better opportunities for Salesforce to use that money, like stock buybacks or increased dividends.

He also has high expectations for the company's data cloud earnings, calling it a "new muscle" for Salesforce with increasing growth opportunities.

For more expert insight and the latest market action, click here to watch this full episode.

This post was written by Melanie Riehl

Video Transcript

Another name in your coverage universe.I know is Sales force CRM reporting in a few weeks, I think Rishi obviously a lot of headlines there about M and A maybe it was happening then it wasn't.What, what are you expecting to hear from?Mark Betting off Rishi?Yeah, look II I don't expect that they're going to comment on the Informatica uh buy out rumors.Uh I will say I'm actually uh breathing a sigh of relief as a sales force B uh that the Informatica deal isn't going through because I think there are better things they can do with that money, uh including buying back their own stock or, or juicing up the dividend.Um You know what I expect out of uh Mark Doff and out of salesforce's results is I think they're going to talk a lot about data cloud and some of success they're having at the data layer which is a new muscle for sales force.But you know, we've been really impressed with the numbers and momentum that we've seen out of data cloud and, and look for kind of more color around that, more color around how their efforts to integrate their multiple clouds including marketing cloud and commerce cloud onto the same core platform are going as well as just how we can see the future margin trajectory going from here.We've seen some very impressive margin expansion coming from sales force over the past year, year and a half.I think there's still a long way to go on margins to get them in line with best in class software companies like Microsoft and Adobe.And so I think there's a lot that investors can be excited about um with sales force and looking forward to hearing a lot of that color on that earnings call.Well, Rishi, maybe we'll have the chance to catch up again when they report the numbers.Thanks so much for your perspective.You're really helpful.