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Salesforce raises annual revenue, profit outlook

imageStock Markets1 hour ago (May 27, 2021 05:03PM ET)

(C) Reuters. FILE PHOTO: The company logo for Salesforce.com is displayed on the Salesforce Tower in New York City, U.S., March 7, 2019. REUTERS/Brendan McDermid/File Photo

(Reuters) -Salesforce.com Inc raised its full-year forecast for revenue as well as profit, and reported quarterly revenue that beat analysts’ estimates, following increased demand for its cloud-based software due to a pandemic-led shift to remote work.

The company’s shares rose 5.4% to $238 on Thursday in extended trading.

Online software providers are reaping the benefits as many companies are continuing with the option of remote work even as vaccination rates rise in some countries like the United States.

Salesforce (NYSE:CRM) agreed to buy Slack Technologies (NYSE:WORK) Inc in December to provide a unified platform for businesses to connect their employees, customers and partners with each other and the apps they use, intensifying its competition against Microsoft Corp (NASDAQ:MSFT), whose Teams software is Slack’s biggest rival.

Salesforce raised its annual revenue forecast to between $25.90 billion and $26.00 billion, above estimates of $25.76 billion.

The company expects full-year adjusted profit between $3.79 and $3.81 per share, beating Wall Street expectations of $3.43.

Salesforce reported total revenue of $5.96 billion in the first quarter, compared with analysts’ estimates of $5.89 billion, according to IBES data from Refinitiv.

The company’s subscription and support revenue for the quarter rose 21% to $5.54 billion.

On an adjusted basis, Salesforce earned $1.21 per share, beating estimates of 88 cents per share.

Salesforce raises annual revenue, profit outlook

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