Daily Management Review

Salesforce’s Earnings Forecast Driven By Hybrid Work Demand


The continued trend of a combination of work from home and office based work will hold up strong demand for its cloud-based software during the third quarter, said Salesforce.com Inc on Wednesday as the company beat analysts’ expectations for earnings for the May-July quarter,
Over the past year, the revenue of the business software maker has been continually increasing – and the growth in the use of automation and artificial intelligence is likely to keep that momentum going, even as countries roll out Covid-19 vaccines which is allowing companies to open up offices and for some employees to get back to office based work.
Salesforce has been able to war5d of competition from legacy players like Oracle, Microsoft and German competitor SAP through a series of acquisitions, including that of the workplace messaging app Slack.
"Our Customer 360 platform is now fueled by a herd of unicorns perfectly designed for this all-digital world," Chief Executive Officer Marc Benioff said in a statement.
The company reported a 23 per cent year on year rise in revenues for the second quarter ended July 31 to $6.34 billion which beat estimates of analysts of revenue of $6.24 billion, according to IBES data from Refinitiv.
The company reported earnings of $1.48 per share, excluding items, compared to estimates of 92 cents.
San Francisco, California-based Salesforce forecast third quarter fiscal 2022 revenue to be between $6.78 billion and $6.79 billion which was also above the estimates of analysts of $6.66 billion.
The company also expects its profit for the aforesaid period to be between 91 cents and 92 cents per share, whereas the estimate of analysts was at 82 cents a share.