Salesforce Says It Will Have Strong Cloud Demand Due To Hybrid Work, Beats Market Expectations For Second Quarter Earnings

Salesforce on Wednesday signaled that the move to hybrid work would keep demand for its cloud-based software strong in the third quarter, after surpassing market expectations for May-July earnings.

The business software maker’s revenue has grown steadily over the past year, with increased automation and artificial intelligence likely to keep that momentum going, even as vaccine deployments gather steam and offices reopen.

A series of acquisitions, including the workplace messaging app Slack, helped Salesforce fend off competition from legacy companies like Oracle, Microsoft and German competitor SAP.

“Our Customer 360 platform is now powered by a herd of unicorns perfectly designed for this all-digital world,” said CEO Marc Benioff in a statement.

Revenue for the second quarter ended July 31 increased 23 percent to $6.34 billion (about INR 47.069 million), beating estimates of $6.24 billion (about Rs 46.326 million), according to with IBES data from Refinitiv.

Excluding the items, the company earned $1.48 (about Rs. 109.8) per share against estimates of 92 cents (about Rs. 68.3).

Salesforce, based in San Francisco, California, forecast third quarter fiscal 2022 revenue of between $6.78 billion (about Rs. 50,336 million) and $6.79 billion (about Rs. 50,408 million), above estimates of $6.66 billion (about Rs. 49,443 million).

It expects profits of between 91 cents (about Rs. 67.5) and 92 cents per share, compared to expectations of 82 cents (about Rs. 60.8).

© Thomson Reuters 2021

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