Salesforce Posts Record Sales
By Aaron Tilley
Salesforce.com Inc. posted record sales and lifted its outlook
for the current year as the business software provider benefits
from a broader embrace during the pandemic of software services
among enterprise customers.
The San Francisco-based company Thursday reported revenue of
$5.82 billion, up 20% from the year-ago period. The company had a
net income of $267 million. Results topped Wall Street's
expectation of $5.68 billion in quarterly sales and a net income of
$46 million, according to FactSet.
"We never could have predicted a year ago what was in store,
which makes me incredibly proud of how well we pivoted our company
to adapt to this pandemic world," Salesforce Chief Executive Marc
Benioff said in a statement.
Salesforce, which was founded more than 20 years ago largely as
a provider of customer relationship management software to
enterprise customer, has been expanding the services it offers as
it tries to challenge rivals such as Microsoft Corp. The company in
December struck its biggest-ever acquisition, the $27.7 billion
proposed acquisition Slack.
Investors have been wary about the acquisition of Slack, which
loses money. Salesforce shares have slumped around 10% since The
Wall Street Journal first reported deal talks.
The Justice Department is putting the deal through a detailed
antitrust review, the two companies said in regulatory filings this
month. Salesforce has said it expects the deal to close by July
Salesforce said Slack would help boost its top line in this
fiscal year by around $600 million. The company lifted its
full-year outlook to sales of $25.65 billion to $25.75 billion, or
$200 million about the earlier forecast.
(More to come.)
Write to Aaron Tilley at email@example.com
(END) Dow Jones Newswires
February 25, 2021 16:44 ET (21:44 GMT)
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