Salesforce.com said its revenue in the quarter ended Jan. 31 rose 20 percent to $5.82 billion from $4.85 billion a year earlier, driven by increased demand for its cloud-based software.
The company’s latest and biggest acquisition of workspace messaging company Slack Technologies Inc for $27.7 billion deal in December is seen as expensive by any Wall Street analysts, even though there are long-term benefits.
The largest provider of customer relationship management software forecast full-year adjusted earnings per share between $3.39 and $3.41.
While new emerging virus strains pose a new hurdle to business spending, Salesforce is also facing stiff competition from Microsoft, which is ramping up its cloud-based offerings.
Salesforce raised its fiscal 2022 revenue forecast slightly to between $25.65 billion and $25.75 billion. The company’s revenue rose 24 percent to $21.25 billion for the full fiscal year 2021.
The business performance of Salesforce is driven by Marc Benioff, chairman and CEO; Amy Weaver, president and CFO; Bret Taylor, president and COO; and Gavin Patterson, president and chief revenue officer.
Salesforce’s revenue target for the fiscal year 2026 is now $50 billion or “basically we’re going to double the company from where we are right now. That is doubling revenue in five years and we’ll reach that milestone faster than any other enterprise software company. That would make Salesforce the second largest independent software company in the world,” Marc Benioff said.
Customers such as Zoom, Carrefour, Humana and others chose the Marketing Cloud to fuel their digital business growth. Marc Benioff said the company moved call centers and contact centers into their employees’ homes with 4.8 billion interactions using Service Cloud in the last quarter.
Customers including Gap, Sonos, Uber Eats used Service Cloud to power success from their customers from anywhere.
The world’s largest CRM company has achieved 26 percent improvement in case times and close rates and 19 percent improvement in same-day resolution after using Service Cloud with Slack to improve performance.
Salesforce said its customers are generating three million Commerce Cloud transactions per day.
Salesforce Einstein, its core artificial intelligence capability, is delivering more than 93 billion AI-powered predictions every single day.
“Customer 360 makes all of our customer interactions smarter than ever before and it’s a great example why Salesforce has been ranked by IDC as the number 1 CRM for the seventh year in a row,” Marc Benioff said.
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