Salesforce had another strong quarter, says Silicon Angle. As a result, it raised its revenue forecast for fiscal year 2020 to 16 billion dollars. In the past quarter, sales increased by 26 percent compared to the previous year to 3.39 billion dollars.
Analysts expected sales of $3.37 billion in the quarter. Profits were also higher than expected. In the third quarter of this year, earnings of 61 US cents per share were collected, compared to expectations of 50 US cents per share.
However, Salesforce’s expectations for the coming quarter were slightly lower than those of analysts. As a result, the shares initially fell by 3 percent. However, company executives explained that the comparisons with the fourth quarter of 2017 were misleading because they had an unusually high number of renewed subscriptions at the time.
However, expectations for the fiscal year 2019 are high. The company then expects to make about $2.60 earnings per share, with sales between $13.23 and $13.24 billion. By 2020, the company must generate 16 billion dollars in turnover. In response to these figures, the number of shares rose by more than 7 percent.
On the right path
Mark Benioff, CEO of the company, said that AI engine Einstein now makes 4 billion predictions a day. According to Ray Wang, founder and analyst at Constellation Research, this is important for the growth of the company. “The future isn’t about CRM, it’s about experience management and AI provides masses of personalized journals.”
MuleSoft, the integration platform that acquired Salesforce in the spring for $6.5 billion, contributed $128 million to last quarter’s revenue. That’s little compared to total revenue, but Salesforce emphasizes that Mulesoft is filling a major strategic gap in its product line, enabling it to link to legacy apps in customer data centers.This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.