Earlier this month, Salesforce (NYSE: CRM) announced its first quarter results. While the company managed to outpace market expectations for the quarter, it failed to provide an impressive outlook. The current global economic conditions have impacted the outlook of most companies. Salesforce is no exception.
Salesforce’s revenues for the first quarter grew 30% to $4.87 billion, above analyst estimates of $4.85 billion. Adjusted earnings wof $0.70 per share was also better than the market’s forecast of $0.66 per share.
By segment, Subscription and support revenues grew 31% to $4.58 billion, Professional services and other revenues grew 20% to $290 million.
Among key metrics, its current remaining performance obligations (CRPO) bookings grew 23% to $14.5 billion. CRPO bookings include deferred revenue and order backlog.
For the second quarter, Salesforce forecast revenues of $4.89-$4.9 billion with an EPS of $0.66-$0.67. The market was looking for $5.04 billion with an EPS of $0.74. Salesforce expects to end the current fiscal with revenues of $20 billion and an EPS of $2.93-$2.95. The forecast is lower than an earlier guidance of revenues of $21-$21.1 billion and an EPS of $3.16-$3.18. The market was looking for revenues of $20.79 billion for the year with an EPS of $3.08.
Salesforce’s Work.com Release
Salesforce continues to expand its market reach through partnerships. Salesforce realized that businesses will need shifts scheduling to address social distancing and several other tools for emergency response management. Earlier last month, it released Work.com, a single-stop shop that offers customers expert perspectives on a regular basis and tools needed for workforce reskilling. The platform enables customers to reopen safely and since it is built on its Customer 360 platform, Salesforce is able to launch a new generation of apps quickly.
Earlier this month, it announced a strategic tie-up with Workday. As part of the partnership, the two companies will offer integrated solutions between Workday and Work.com. The integrated solution will synchronize critical worker and skills data from Workday and include that in the Workday Skills Cloud ontology and integrate it with Work.com’s safety, health, and workplace information.
The joint solutions will help provide customers with insight into site readiness and track regional health considerations . They will be able to assess worker location preferences or viability by health-screening, to determine ongoing employee eligibility based on health and safety training completion. Customers will also be able to identify the skills needed to determine opportunities to upskill and reskill their workforce based on evolving business needs. In the coming months, both Salesforce and Workday will continue to add additional capabilities to the platform based on the requirements of the times.
Its stock is trading at $174.99 with a market capitalization of $157.7 billion. It had touched a record high of $195.72 in February this year. The stock fell to a 52-week low of $115.29 in March due to the global crisis.
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This segment is a part in the series : Cloud Stocks