Salesforce growth accelerates as company offers strong guidance for coming fiscal year

▤ Summary

Salesforce shares rose 5% in extended trading on Thursday after the cloud software maker issued earnings and guidance that surpassed analysts expectations. While different parts of the world have reopened their economies to varying degrees, there wasnt a single area that was slower than others in the quarter, said Gavin Patterson, Salesforces chief revenue officer. "Our decision to raise fiscal 2022 revenue is reflective of our Q1 performance and our confidence in our ability to execute for the rest of the year," said Amy Weaver, the companys finance chief. The full-year guidance includes a contribution of $500 million in revenue from team communication software app Slack, a $27.7 billion acquisition expected to close right at the conclusion of the quarter that ends on July 31. "While concerns on M&A appetite and durable margin expansion may linger, leading franchises do not stay cheap for long, particularly amidst the strong demand backdrop we foresee over the next several years," they wrote.

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