Salesforce raises annual profit view on steady cloud demand


A logo of Salesforce is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France June 16, 2022. REUTERS/Benoit Tessier/File Photo

(Reuters) -Salesforce raised its annual profit forecast and its third-quarter results beat Wall Street targets on Wednesday, benefiting from a strong demand for its cloud and business products in an uncertain economy.

Its shares rose 7% after the bell as it also forecast fourth-quarter revenue and profit above expectations, raising optimism that tech spending is picking up pace in the second half as inflation cools.

The company now expects full-year adjusted profit between $8.18 and $8.19 per share compared with $8.04 to $8.06 it had forecast earlier.

This also indicates that the profitability push is paying off for the company that has primarily gained market share through acquisitions and by expanding its product portfolio.

Salesforce had said in September it would hire more than 3,000 people across various departments after cutting jobs by 10% in January to drive up margins.

"Salesforce's terrific earnings are another signal that their core business is trending upward, as their increasingly profitable growth and forecasted AI tailwinds continue to fuel a tremendous YTD stock resurgence," said Third Bridge analyst Charlie Miner.

The company launched its generative AI tool, Einstein Copilot, which can summarize video calls and generate emails for various purposes across its suite of apps, including Slack and Tableau, in September.

Salesforce expects fourth-quarter adjusted profit in the range of $2.25 to $2.26 per share compared with estimates of $2.17.

It forecast revenue between $9.18 billion and $9.23 billion, the midpoint of which exceeded estimates of $9.21 billion, according to LSEG data.

The company's third-quarter revenue of $8.72 billion narrowly beat expectations, while adjusted profit of $2.11 per share beat estimates by 5 cents.

It also raised the lower end of its annual revenue forecast to $34.75 to $34.8 billion.

(Reporting by Zaheer Kachwala in Bengaluru; Editing by Arun Koyyur)

Follow us on our official WhatsApp channel for breaking news alerts and key updates!

   

Next In Tech News

Alphabet, Epic Games hit impasse in Google Play antitrust talks
Meta targeted in privacy complaints by 8 EU consumer groups
Microsoft probes reports bot issued bizarre, harmful responses
Selangkah denies alleged data breach, says its databases are secure
US SEC investigating if OpenAI investors were misled, WSJ reports
Bosch and Microsoft to cooperate on AI technology for car safety
Robot dogs and flying cars: MWC gadget highlights
South Korea's President Yoon to meet Meta's Zuckerberg on Thursday
Soaring bitcoin set for biggest monthly jump since 2020
Meta’s Zuckerberg to deepen tie-up with LG on next-gen devices

Others Also Read