Salesforce.com Inc. (NYSE:CRM) was founded by Marc Benioff in a small apartment located in San Francisco 21 years ago. Benioff wanted to make software available for the masses through cloud computing, reducing the need of buying and maintaining expensive computer hardware and software systems. Today, Salesforce is one of the world’s biggest software companies, enabling enterprises to connect to their customers using its suite of software and cloud technologies.
The company’s Customer 360 platform includes a complete range of cloud-based software tools that help businesses effectively communicate with their customers. The demand for Salesforce’s software remained elevated in 2020, as many brands shifted their businesses online due to the Covid-19 pandemic. Enterprises had to offer high-quality services to customers through online means, fueling the demand for cloud-based customer relationship management tools. Salesforce also capitalized on the trend last year, and its stock’s value rose nearly 34 percent in 2020.
Salesforce recently announced strong financial results for the fourth quarter. It reported adjusted earnings of $1.04 per share for the three months ended January 31, easily beating the consensus forecast of 75 cents per share. Revenue came in at $5.82 billion, translating to a surge of 20 percent on a year-over-year basis. Analysts on average were expecting Salesforce to report revenue of $5.68 billion.
CEO Marc Benioff expressed his satisfaction over the results and said, “We had a record quarter and year by innovating more and faster than ever, enabling our customers to be successful from anywhere, and becoming more relevant and strategic than ever. And we continued to serve all of our stakeholders in a time when they needed it most.”
Salesforce also offered a revised sales outlook for the full year. It expects to generate revenue in the range of $25.65 billion to $25.75 billion for fiscal 2022, higher than the consensus forecast of $25.42 billion.
However, its adjusted profit guidance for the full year lagged expectations. Salesforce projected adjusted earnings in the range of $3.39 per share to $3.41 per share for FY 2022, behind analysts’ average forecast of $3.49 per share.
Salesforce shares fell 6.31 percent to $216.50 on Friday over the weak adjusted profit outlook for the full year.