2 min Applications

Hybrid work forms the backbone of Salesforce’s earnings forecast

Hybrid work forms the backbone of Salesforce’s earnings forecast

After exceeding expectations for earnings in the May-July period, Salesforce signalled that the shift to hybrid work may keep demand for its cloud-based software going in Q3.

The business software maker saw its revenue rise over the past year, with the introduction of automation and artificial intelligence to keep the momentum going, even as vaccine rollouts continue and people start trickling back into the offices.

Several acquisitions, including Slack, have helped the company compete with legacy companies like SAP, Microsoft, and Oracle.

Salesforce’s carriage is drawn by a herd of unicorns

Salesforce CEO Marc Benioff said in a statement that the company’s Customer 360 platform is driven by ‘a herd of unicorns’ designed to be a perfect fit in an increasingly digital world.

Revenue in Q2, ended July 31, rose 31%to each $6.34 billion, well past the estimates of $6.24 billion, according to IEBS data from Refinitiv.

Excluding items, the company was estimated to earn 92 cents per share but hit $1.48. The San Francisco, California-based company forecast Q3 fiscal 2022 revenue between $6.78 billion and $6.79 billion, well above estimates of $6.66 billion.

The company also expects profits to be between 91 and 92 cents per share, compared to estimates of 82 cents.

How Salesforce performed

The company’s Platform and Other units (inclusive of MuleSoft integration software and Tableau data analytics software) hit $1.88 billion in revenue, up 24%.

The Service Cloud segment posted $1.60 billion in revenue, translating to about 23% growth.

The Sales Cloud product used by salespeople to manage business opportunities grew 15% to hit $1.48 billion in revenue. Salesforce has reopened half its offices after closing for the last year due to the pandemic, with Benioff saying that the delta variant will not be ‘material to our business.’ Adding that ‘if anything, it only accelerates it.’