Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Salesforce posts upbeat results on hybrid work boost

Published 03/01/2022, 04:13 PM
Updated 03/01/2022, 06:31 PM
© Reuters. FILE PHOTO: The Salesforce logo is pictured on a building in San Francisco, California, U.S. October 12, 2016. REUTERS/Lily Jamali
MSFT
-
CRM
-

(Reuters) -Salesforce.com Inc on Tuesday reported quarterly revenue and profit above Wall Street estimates, as a pandemic-led shift to hybrid work kept up the strong demand for its cloud-based software, sending its shares up 4% in extended trading.

Companies like Salesforce (NYSE:CRM) reaped the benefits of the pandemic, with organizations doubling down on their effort for digitization and switch to remote working and learning. The fresh restrictions from the spread of the Omicron variant also added a boost.

San Francisco, California-based Salesforce's subscription and support revenue for the fourth quarter rose 24.7% to $6.83 billion.

Along with demand for its platforms like Customer 360, the recent addition of Slack's workplace app also helped the cloud-based software maker in adding users.

"Slack continues to exceed our expectations that I think is benefiting not only from the trend towards this new way of working ... It's also benefiting being a part of our Customer 360 portfolio," Bret Taylor, Salesforce co-chief executive officer, said on a call.

Rival Microsoft Corp (NASDAQ:MSFT) in January also reported 26% growth in second-quarter revenue for its biggest segment, which offers cloud services and includes its flagship cloud offering, Azure.

For 2023, Salesforce expects revenue of $32 billion to $32.1 billion, above expectation of $31.78 billion.

The company's revenue rose 26% to $7.33 billion in the quarter, beating analysts' estimate of $7.24 billion, according to IBES data from Refinitiv.

© Reuters. FILE PHOTO: The Salesforce logo is pictured on a building in San Francisco, California, U.S. October 12, 2016. REUTERS/Lily Jamali

On an adjusted basis, Salesforce earned 84 cents per share, topping estimates of 74 cents. However, its current-quarter and full-year adjusted earnings guidance came below expectations.

The company also forecast first-quarter revenue to be between $7.37 billion and $7.38 billion. Analysts on average expect it to be $7.26 billion.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.