Salesforce Rides Hybrid Work Boost to Post Upbeat Results

Salesforce's subscription and support revenue for the fourth quarter rose 24.7 percent to $6.83 billion (roughly Rs. 51,700 crore).

Salesforce Rides Hybrid Work Boost to Post Upbeat Results

Photo Credit: Reuters

Slack's workplace app also helped the cloud-based software maker in adding users

Highlights
  • Salesforce benefitted from the restrictions due to the Omicron variant
  • Firms are moving towards digitization with remote working and learning
  • Salesforce Rival Microsoft also reported 26 percent growth in January
Advertisement

Salesforce 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 have 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 percent to $6.83 billion (roughly Rs. 51,700 crore).

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 in January also reported 26 percent 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 (roughly Rs. 2,42,100 crore) to $32.1 billion (roughly Rs. 2,42,800 crore), above expectation of $31.78 billion (roughly Rs. 2,40,300 crore).

The company's revenue rose 26 percent to $7.33 billion (roughly Rs. 55,400 crore) in the quarter, beating analysts' estimate of $7.24 billion (roughly Rs. 54,800 crore), according to IBES data from Refinitiv.

On an adjusted basis, Salesforce earned 84 (roughly Rs. 64) cents per share, topping estimates of 74 cents (roughly Rs. 56). 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 (roughly Rs. 55,700 crore) and $7.38 billion (roughly Rs. 55,814 crore). Analysts on average expect it to be $7.26 billion (roughly Rs. 54,900 crore).

© Thomson Reuters 2022


Gaana CEO and Spotify's India chief join us on Orbital, the Gadgets 360 podcast, to discuss India's unique music streaming landscape. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.
Affiliate links may be automatically generated - see our ethics statement for details.
Comments

For details of the latest launches and news from Samsung, Xiaomi, Realme, OnePlus, Oppo and other companies at the Mobile World Congress in Barcelona, visit our MWC 2024 hub.

Xiaomi 12 Series Global Launch Date Set for March 15, New Poster Leak Hints
Lenovo ThinkVision M14d Portable Monitor With 2.2K Display Launched at MWC 2022
Share on Facebook Gadgets360 Twitter Share Tweet Snapchat Share Reddit Comment google-newsGoogle News
 
 

Advertisement

Follow Us

Advertisement

© Copyright Red Pixels Ventures Limited 2024. All rights reserved.
Trending Products »
Latest Tech News »