Tech

Salesforce predicts revenue will decline as cloud competition intensifies

Salesforce.com Inc forecasts first-quarter earnings below Wall Street estimates on Monday, overshadowing strong third-quarter earnings and down 6% in long-term trading.

Based in San Francisco, California, the company chose insider Bret Taylor to co-lead the company with top boss Marc Benioff.

Taylor was appointed Chairman of the Board of Directors of Twitter on Monday. He also served as Vice Chairman of Salesforce’s Board of Directors, and the company said it would come into effect soon.

Salesforce, a pioneer in the customer relationship management (CRM) sector, is seeing a surge in demand as companies move to cloud-based platforms as pandemics accelerate.

However, the company continues to face fierce competition from competitors such as Microsoft Corp’s Azure, Amazon.com Inc’s Amazon Web Services, and Alphabet Inc’s Google Cloud.

Last month, Microsoft reported strong growth in its flagship cloud computing business, the Azure segment. Segment revenue increased 48% in constant currency in the first quarter.

Meanwhile, Google Cloud revenue in the third quarter was $ 499 billion, up 45%.

According to Salesforce, first-quarter revenue was between $ 7.22 billion and $ 7.25 billion, with Refinitiv IBES estimated at $ 7.36 billion.

However, the company reported that third-quarter revenue was higher than expected, boosted by strong demand for cloud-based software.

Revenues for the quarter ended October 31 were up 27% to $ 6.86, ahead of analysts’ estimates of $ 6.8 billion, according to Refinitiv’s IBES data.

Eliminating temporary costs, the company reported revenue of $ 1.27 per share. Again, this is above the estimate of 92 cents per share.

Read all the latest news, Breaking news When Coronavirus news here.

Salesforce predicts revenue will decline as cloud competition intensifies

Source link Salesforce predicts revenue will decline as cloud competition intensifies

Related Articles

Back to top button