CFO says the company will be 'more scalable' in hiring. The first-quarter results beat analyst expectations and improved full-year earnings guidance.
Here's how the company does it:
- Earnings: 98 cents per share, adjusted versus 94 cents per share, as analysts expected, according to Refinitiv.
- Revenue: $7.41 billion versus $7.38 billion, according to analyst estimates, according to Refinitiv.
- According to a statement, Salesforce revenue increased 24% year-on-year in the quarter ended April 30. However, net income fell 94% to $28 million. In addition, the company reported a lower return on investment during the quarter while selling and marketing costs increased.
Salesforce said its customer service request cloud generated $1.76 billion in revenue or nearly 17 percent. Sales Cloud's core business management products revenue accounted for $1.63 billion, or 18%. "We just don't see a significant impact on the broader business community you're in," Salesforce co-founder and co-CEO Mark Benioff said during a conference call with analysts. However, companies are aware of macroeconomic uncertainties, including foreign exchange volatility, said Amy Weaver, the company's chief financial officer.
Salesforce announced that the Sales Cloud, Service Cloud, and Slack Marketing Cloud integrations were still in beta during the quarter. Salesforce acquired Slack for $27.1 billion in July. The company also announced the launch of Safety Cloud for in-person events during the quarter and changed its official name to Salesforce Inc. by Salesforce.com Inc. Salesforce was founded in 1999 at the height of the dot-com craze.
"In 2001, I think it hit us; we almost lost our business because we had monthly contracts, we didn't have the right cash flow structure in place, investors just didn't want to give us money - so we did a lot of that change and it really "strengthens our business and makes us more resilient to extreme weather," he said.
In early March, after Russia invaded Ukraine, Salesforce said it had begun cutting ties with customers it had won in Russia through retailers and other channels.
Salesforce said it had $13.64 billion in unpaid revenue, mostly from subscription bills. That's slightly below StreetAccount's consensus of $13.76 billion.
