Salesforce quarterly results reveal revenue rises by 20 percent

The Cloud Computing firm, Salesforce, announced its quarterly results on Thursday for the fourth quarter of the fiscal year ended on Jan 31, 2021. The firm has reported 20 percent revenue growth on a quarter y-o-y basis. As Salesforce came up short on its full-year earnings forecast, shares on the company fall by 4 percent on Thursday. There is a strong beat on the top and bottom lines. The company has not yet done the Acquisition of Slack, amounting to 27.7 billion USD.

Summary of the Salesforce Salesforce quarterly results

· Earnings per share are 1.04 USD adjusted against 75 cents per share as analyst expected, according to Refinitive (Global Financial Expert firm)

· Revenue is 5.82 billion USD against expectations of 5.68 billion USD.

· Twenty percent growth in Y-O-Y revenue for the quarter ended, which was same for the previous quarter. 

Revenue guidance for the whole FY 2022 surpassed estimates; earnings guidance was soft.

In December, the company said that it planned to acquire Slack for over 27 billion USD, and it is expecting to close the deal by the end of the quarter ending July 31.

In the quarter, the company announced Vaccine cloud, a tool that government agencies and pharma companies can use to manage the deployment of Covid-19 Vaccines.

In the fourth quarter, Salesforce generated $1.36 billion in subscription and support revenue from its essential Sales Cloud product for tracking sales leads, translating into roughly 11% annualized growth, compared with 12% for the prior quarter. 

Acquisitions have helped the company expand over the years. The Tableau data visualization software Salesforce bought in 2019 contributed to its $1.81 billion in subscription and support revenue from Platform and Other products, up 26% and accelerating from 24% in the prior quarter.

Salesforce had $18 billion in current remaining performance obligations at the end of the quarter, up 20%. 

FactSet’s analysts had expected 16% growth, and the growth rate was 20% in the previous quarter.

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