SALESFORCE: annual objectives revised upwards after an excellent 1st quarter

  •   07/06/2021 - 08h45
  •   DEHOUI Lionel

Like many companies for some time, the American group Salesforce has unveiled its quarterly results for the first quarter of 2021. Its activity shows a strong progression during this period. Thus, the Californian company has achieved interesting performances exceeding all market expectations. This has enabled it to revise upwards its objectives for the whole of the current financial year.

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SALESFORCE: annual objectives revised upwards after an excellent 1st quarter

Better results than expected in the first quarter

In the first quarter of 2021, software company Salesforce saw its business grow significantly. For the quarter as a whole, it had revenue of $5.96 billion. It is up 22.4% over the one-year period. Also, this revenue is slightly higher than the market's expectations of $5.89 billion.

For the first three months of the year as a whole, the California-based company posted a net profit of $469 million. This is equivalent to 50 cents per share. For the quarter as a whole, the American group's adjusted EPS came to 1.21 dollars, significantly exceeding market forecasts.

This puts its adjusted operating margin at 20.2% in Q1-2021. Furthermore, the company believes that the strong results for the past quarter were driven by record levels of new business achieved by the group. Also, it states that during this period, the company has seen great success across its products and regions.

 

Full year guidance raised

Buoyed by the strong performance in the first quarter, Salesforce has raised its full-year guidance for 2021. For the second quarter, the business software developer is targeting adjusted EPS between 91 and 92 cents. It also expects to achieve revenue of $6.22 billion to $6.23 billion over that period.

For the full year, the US company now expects adjusted earnings in the range of $3.79 to $3.81 per share. This exceeds the market's expectation of $3.44. Previously, Salesforce was targeting $3.39 to $3.41 per share (for the full year 2021).

As for its annual turnover, the company now expects a figure between 25.9 and 26 billion dollars, compared to 25.65 to 25.75 billion (initial forecast). Analysts, on the other hand, are forecasting full-year revenue of $25.75 billion.

 

About Salesforce

Founded in 1999 and headquartered in San Francisco, USA, Salesforce is a software company that specializes in the distribution of Internet-based business software. It is also recognized as a specialist in enterprise application hosting. In addition, the group is well known worldwide for its customer relationship management solutions.

Salesforce is also recognized as the forerunner of cloud computing. The company has more than 150,000 enterprise customers in its customer portfolio. It offers its customers a real competitive advantage. This is achieved by offering them new and innovative solutions on a regular basis.