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Salesforce Reports Strong Q1 Results- Raises Fiscal Guidance

By John F. Heerdink, Jr.

As per reports, Salesforce (CRM) released strong Q1 earnings ending April 30 as they confirmed a 23% growth in revenue year over year.

Key Highlights:

  • Adjusted earnings per share of $1.21 were reported, versus 88 cents per share as expected.
  • Revenue stood at $5.96 billion, vs. $5.89 billion as expected.
  • The Platform and other segments, including the MuleSoft and Tableau products contributed $1.75 billion in revenue, up by 28%.
  • Salesforce’s core Sales Cloud product delivered $1.39 billion in revenue, up by 11%.

Salesforce released second-quarter earnings guidance with 91 cents to 92 cents in adjusted fiscal per share on $6.22 billion to $6.23 billion in revenue. Analysts expected 86 cents in adjusted earnings per share and $6.15 billion in revenue.

Salesforce forecasted $3.79 to $3.81 in adjusted earnings per share for the full 2022 fiscal year, with $25.9 billion to $26.0 billion in revenue, or 22% growth. The expected full-year adjusted operating margin increased to 18% from 17.7% as revenue guidance increased by $250 million in the middle of the range.

“Our decision to raise fiscal 2022 revenue is reflective of our Q1 performance and our confidence in our ability to execute for the rest of the year,” stated Amy Weaver, the company’s finance chief.

The full-year guidance includes a contribution of $500 million in revenue from the team communication software app Slack, with an acquisition of $27.7 billion that is expected to close right after the quarter that ends on July 31. The guidance also includes $190 million in revenue from Acumen Solutions, a professional services company, Salesforce acquired in the fiscal first quarter.

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(Read Original Story: Salesforce growth accelerates as company offers strong guidance for coming fiscal year in CNBC)


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