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Salesforce Q2 Earnings Beat Estimates – Raises Full-Year Guidance

By John F. Heerdink, Jr.

As per reports, enterprise software maker and Dow 30 component Salesforce (CRM) reported second-quarter earnings beating analysts’ estimates. The company reported adjusted earnings of $1.48 per share versus 92 cents per share expected and revenue of $6.34 billion was reported exceeding analyst estimates of $6.24 billion. Revenue increased 23% year over year in the quarter, ended July 31. 

“I don’t think the delta variant will be material to our business. If anything, it only accelerates it,” stated CEO Marc Benioff said during a conference call with analysts. 

Quarter Highlights:            

  • Salesforce’s Platform and Other units, which includes the MuleSoft integration software and Tableau data-analytics software, reported $1.88 billion in revenue, up by 24%.
  • The Service Cloud segment reported $1.60 billion in revenue, representing about 23% growth.
  • Salesforce’s core Sales Cloud product had $1.48 billion in revenue, up by 15%.
  • In the quarter, ending July 31 Salesforce completed its $27.7 billion acquisition of team communication app company Slack. Slack’s revenue grew by 39% on a standalone basis in the quarter.
  • Salesforce expects 91 to 92 cents in adjusted fiscal third-quarter earnings per share on $6.78 billion to $6.79 billion in revenue. Analysts expected 82 cents in adjusted earnings per share and $6.66 billion in revenue.
  • Salesforce raised its earnings and revenue guidance for the full 2022 fiscal year and now sees $4.36 to $4.38 in adjusted earnings per share and $26.2 billion to $26.3 billion in revenue, higher than analyst estimates of $3.82 in adjusted earnings per share and $26.01 billion in revenue The revenue figure includes $530 million from Slack, which is $30 million more than Salesforce had predicted one quarter earlier. The company projected that its operating margin for the fiscal year would be 1.8%, broader than the 1.4% guidance from the previous quarter.

Vista Partners LLC (”Vista”) is a California Registered Investment Advisor based in San Francisco. Vista delivers timely and relevant insights via the website: www.vistapglobal.com with daily stories, weekly market updates, monthly macroeconomic newsletters, podcasts, & Vista’s proprietary equity and market research to help you stay informed and stay competitive. Vista’s mission is to invest partner capital while arming investors with a comprehensive global financial perspective across all market sectors. Vista also seeks to provide select issuers with actionable advice regarding fundamental development, corporate governance, and capital market directives.

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(Read Original Story: Salesforce raises full-year earnings guidance following its acquisition of Slack in CNBC)


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