Salesforce.com Boosted Full Year Guidance After Acquiring Slack and Reported Strong Q2 Earnings

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Source: Dreamstime

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On Wednesday, shares of the cloud computing solutions company rose by 3% in extended hours trading after its second-quarter results outperformed analyst expectations. But that’s not the whole story, for in the last three months Salesforce also acquired the leading business communications platform Slack.

 

Financial performance for Q2 2022

Here are the main financial highlights from Salesforce’s earnings release:

 

– Gross revenue: $6.34 billion (23% y/y growth) vs. $6.24 billion expected

– Earnings per share: $1.48 vs. $0.92 expected

– Core Sales Cloud product (used by sales reps to stay current with the latest business opportunities): $1.48 billion (15% growth)

– Service Cloud segment: $1.60 billion (23% growth)

– Platform and Other unit (includes integration and data-analytics software): $1.88 billion (24% growth)

– Acquisitions: in the quarter, the company acquired business communications giant Slack for $27.7 billion

– Announcements: in the last three months, Salesforce announced that it will build new tools, aimed at improving the workflow of investment banks through its Financial Services Cloud, as well as release its Work.com software for employee wellness

– COVID-19 recovery: so far, the company has opened roughly half of its offices since the onset of the global pandemic

 

Forecast for Q3 2022

“I don’t think the delta variant will be material to our business. If anything, it accelerates it”.

Marc Benioff, CEO

 

For the period, Salesforce now expects earnings per share of between 91 and 92 cents and gross revenue ranging from $6.78 billion to $6.79 billion. In terms of FY 2022, these figures are now $4.36 to $4.38 and $26.2 to $26.3 billion, respectively. The yearly revenue estimate also includes $530 million in earnings from the newly acquired Slack platform – $30 million more than what the company had anticipated in the prior quarter.


Upcoming reports

See the full list of upcoming earnings reports for August 30th – September 3rd in the tables below.

Monday, 30th August 2021

CountryCompanyFiscal period
USAZoom Video Communications Inc
Q2 2022

Tuesday, 31 August 2021

CountryCompanyFiscal period
USAAmbarella Inc
Q2 2022
United KingdomBunzl PLC
Half Year 2021
NorwayNorwegian Air Shuttle ASA
Q2 2021

Wednesday, 1st September 2021

CountryCompanyFiscal period
BelgiumD'Ieteren Group NV
Q2 2021
FrancePernod Ricard SA
Full Year 2021

Thursday, 2nd September 2021

CountryCompanyFiscal period
USABroadcom Inc
Q3 2021
USAHewlett Packard Enterprise Co
Q3 2021
United KingdomBarratt Developments PLC
Full Year 2021
Kingdom of the NetherlandsVEON Ltd
Q2 2021

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