Salesforce presented its first-quarter fiscal results. The organization exceeded expectations, lifted its full-year profit guidance and sent the stock flying in after-hours trading.
The company reported revenue of $7.4 billion, a 24 percent increase from last year. “We had another great quarter”, said Marc Benioff, Co-CEO, Salesforce.
“There is no greater measure of our resilience and the momentum in our business than the $42 billion we have in remaining performance obligation, representing all future revenue under contract. While delivering growth at scale, we’re committed to consistent margin expansion and cash flow growth as part of our long-term plan.”
The company reported that Service Cloud, which handles customer service inquiries, generated $1.76 billion in revenue, up 17 percent from a year ago. Sales Cloud, which is used by enterprises to manage business opportunities, contributed $1.63 billion in sales, up 18 percent.
Changing macroeconomic environment
In a call with analysts, Salesforce CFO Amy Weaver said the company is well aware of the macroeconomic uncertainty facing many companies at this time, including the volatility of foreign exchange rates. The CFO is referring to financial trouble at Apple, Meta and Cisco, among others. However, Benioff told analysts that Salesforce was “not seeing material impact on the broader economic world that all of you are in.”
Salesforce certainly needs to be durable, for the company has taken a hit in Russia, where it has begun ending relationships with customers. Still, the company said it has more than $13.6 billion in unearned revenue to look forward to, mainly from subscription billings.
During the quarter, Salesforce announced new Slack integrations for Sales Cloud, Service Cloud and Marketing Cloud. It also launched a new business called Safety Cloud, which assists businesses wanting to organize in-person events. Finally, the company announced that its legal name has changed from Salesforce.com Inc. to Salesforce Inc.