Salesforce shares fell by 6% after quarterly report

Salesforce CRM developer releases Q3 2022 report. Results exceeded expectations, but the company gave a weak outlook for the next quarter. Shares fell by 6%, to 267 $.

Salesforce is a set of cloud services for working with clients. Businesses use these services, to increase sales, establish technical support, set up ads and more.

Revenue. Total sales increased by 27%, up to $6.9 billion. Here is how revenue was distributed by segments:

Sales - tracking and planning sales - 1.5 billion (+17%).
Service - customer support - 1.7 billion (+20%).
Platform and Other - a platform with applications from different developers - 1.3 billion (+51%).
Marketing and Commerce - ad customization and targeting - 1 billion (+25%).
Data - visual data analytics and integration with other services - 0.9 billion (+20%).
Professional Services and Other - consulting on the implementation of Salesforce services - 0.5 billion (+45%).

Salesforce Include Slack Revenue Starting This Quarter. A year ago, the company announced the purchase of corporate chat for $ 28 billion. Slack's revenue amounted to 0.3 billion and entered the Platform and Other segment.

According to company forecasts, in the fourth quarter of fiscal 2022, revenue will grow by 24%, up to 7.2 billion. Analysts expect the same.

Profit. Net profit fell by 57%, up to 0.5 billion. A adjusted profit, which does not take into account miscellaneous non-monetary expenses, fell on 22%, up to 1.3 billion. It's all about "strategic investments" - profits, that Salesforce receives from investments in stocks of other companies. Relative to last year, the return on investment fell by 65%, with 1 up to 0.4 billion.

Fourth-quarter adjusted earnings per share fall short of analyst expectations: 0,72 against 0,81 $. According to the company, increase in labor costs and investment in business development.

Promotions. Given the recent drop in Salesforce shares since the beginning of the year, they have risen by 21%. Broad Market Index S&P 500 added over the same period 24%.