“Salesforce.com Inc. posted record sales and lifted its outlook for the current year as the business software provider benefits from a broader embrace during the pandemic of software services among enterprise customers,” WSJ writes.
Numbers To Consider:
- Quarterly Revenue: $5.82 Billion (+20%)
- Net Income: $267 Million
- Current Year Adjusted Operating Margins: 17.7% (flat compared to the year that just ended)
Some Salesforce History: Founded more than 20 years earlier, as a provider of customer relationship management software, Salesforce has been expanding its offering as it tries to even the playing field with rivals like Microsoft.
- In December, Salesforce landed its biggest acquisition to date — the $27.7 billion proposed acquisition of Slack. (Though, investors are wary of Slack because it loses money. The deal is expected to close July 31.)
Into The Crystal Ball: With Slack in tow, Salesforce said it would help boost its top line for the fiscal year by roughly $600 million.
- In total, the company raised its full-year sales outlook to between $25.65 billion and $25.75 billion (a $200 million increase).
“Salesforce’s upbeat outlook echoes Microsoft, which last month posted record sales and forecast more growth in the coming months.”
Salesforce ($CRM) is actually down over 3% today after reporting earnings because management cautioned on future growth due to its integration with Slack. Salesforce expects adjusted earnings for Fiscal Year 2022 of $3.39 to $3.41 a share, which was below Wall Street estimates.
In general, I am not very optimistic about the Slack acquisition. I have wracked my brain around how this could be a good strategic integration, but the logic seems forced in most scenarios, especially since most big enterprises are already using Microsoft Teams.