Salesforce shares fell by 6% after quarterly report

Акции Salesforce упали на 6% после квартального отчета

The developer of the CRM-system Salesforce published a report for the third quarter of the 2022 fiscal year. Results exceeded expectations, but the company gave a weak forecast for the next quarter. Shares fell by 6%, to 267 $.

Salesforce is a set of cloud services for working with customers. Businesses use these services, to increase sales, establish technical support, set up advertising and so on.

Revenue. Total sales increased by 27%, to $6.9 billion. Here's how revenue was distributed by segment:

  1. Sales – Sales Tracking and Planning – 1.5 billion (+17%).
  2. Service — customer support — 1.7 billion (+20%).
  3. Platform and Other — a platform with applications from different developers — 1.3 billion (+51%).
  4. Marketing and Commerce – Ad Setup and Targeting – 1 Billion (+25%).
  5. Data – Visual Data Analytics and Integration with Other Services – 0.9 billion (+20%).
  6. Professional Services and Other – Salesforce Services Implementation Consulting – 0.5 billion (+45%).

Starting this quarter, Salesforce is accounting for Revenue from Slack. A year ago, the company announced the purchase of corporate chat for $ 28 billion. Slack's revenue was 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%, to 7.2 billion. Analysts expect the same amount..

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

The forecast of adjusted earnings per share in the fourth quarter did not reach analysts' expectations: 0,72 vs 0,81 $. According to the company, labor costs and investments in business development will increase.

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

Revenue and forecast for 2022 and 2023 Financial years, billion dollars

2019 13,3 (+26%)
2020 17,1 (+29%)
2021 21,3 (+24%)
2022 26,4 (+24%)
2023 31,7 (+20%)

13,3 (+26%)

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