Tech

Salesforce stocks fall into disappointing profit forecasts

Salesforce.com Inc expects profits this quarter to fall below Wall Street estimates on Tuesday as it faces fierce competition from rivals, including Microsoft Corp, down 6% in expansion trading increase.

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.

According to Refinitiv’s IBES data, Salesforce expects adjusted earnings for the fourth quarter to be between 72 cents and 73 cents per share, below the estimate of 81 cents per share.

The company also forecasts first-quarter sales between $ 7.32 billion and $ 7.25 billion, with an estimate of $ 7.36 billion.

Last month, Microsoft reported strong growth in its flagship cloud computing business, the Azure segment. Google Cloud revenue in the third quarter was $ 499 billion, up 45%.

On a post-revenue phone call, Taylor advertised the performance of Slack, a workplace messaging app that Salesforce bought for a $ 27.7 billion transaction, but showed that the company wasn’t keen on M & A in the short term.

However, Salesforce 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 billion, 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.

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Salesforce stocks fall into disappointing profit forecasts

Source link Salesforce stocks fall into disappointing profit forecasts

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