Salesforce, the leading business-software provider, has announced impressive financial results for the latest quarter. Here are the key details:
Revenue Surge
Salesforce’s revenue reached $8.6 billion during this quarter, compared to $7.72 billion in the same period last year. This surpassed the expectations of analysts, who forecasted revenue of $8.53 billion.
Adjusted Earnings
The company’s adjusted earnings per share stood at $2.12, a significant increase from $1.19 per share in the previous year. This exceeded the estimated adjusted earnings of $1.90 per share.
Net Income Soars
Salesforce’s net income experienced remarkable growth, rising to $1.27 billion from $68 million in the same period last year. Analysts predicted a net income of $773.9 million.
Key Points to Note
Margins
Salesforce achieved adjusted operating margins of 31.6% in the second quarter, ending on July 31. The company also raised its adjusted operating margin guidance for fiscal 2024 to 30%, surpassing its previous estimate of 28%. The emphasis on cost management as part of their turnaround plan has been crucial in achieving these results, following pressure from shareholders earlier this year.
CEO’s Comment
Chief Executive Marc Benioff expressed optimism regarding future performance, stating, “Based on our performance and what we see in the back half of the year, we’re raising our fiscal year ’24 revenue, operating margin, and operating cash flow growth guidance.”
Outlook
Salesforce has provided a positive outlook for the upcoming quarter and fiscal year 2024. For the third quarter, the company projects revenue between $8.7 billion and $8.72 billion, as well as adjusted earnings per share ranging from $2.05 to $2.06, surpassing analysts’ estimates. Moreover, for fiscal 2024, Salesforce expects revenue in the range of $34.7 billion to $34.8 billion, with adjusted earnings per share ranging from $8.04 to $8.06, also exceeding analysts’ estimates.