Salesforce to slow recruitment and M&A activity after posting strong Q1 results

Salesforce saw revenue grow 24% year-over-year to $ 7.41 billion, a strong start to the financial year for the software-a-service giant. However, net income for the quarter fell from $ 469 million to $ 28 million.

Revenue for the quarterly sales cloud was $ 1.63 billion; Service Cloud was 1.76 billion; Marketing and commerce cloud 1.1 billion; Data Cloud — including TableO and Mulesoft — 5 955 million; And the platform যা which was now part of the messaging service Slack-4 1.42 billion, of which Slack alone contributed $ 344 million.

Salesforce is set to benefit financially from its $ 27.7 billion Slack acquisition in 2020. This is a trend that is likely to continue, as companies around the world continue to talk about simplifying hybrid and remote work models.

“Each of our clients is deciding how they will succeed in this new era of flexible work, because not every single person, especially office workers, is returning to the office five days a week,” Brett Taylor, co-CEO, told analysts. After the announcement of the results.

Salesforce cut its full-year revenue guidance from $ 31.8 billion to $ 31.7 billion, due to foreign exchange volatility.

Salesforce will be more disciplined in 2023

Technology stocks have hit hard in recent months, and Salesforce is no exception, with its stock prices falling nearly 50% so far this year. The CRM seller has seen its stock price return by 8% after reporting its results.

“So far, we haven’t seen any material impact from the wider economic world that you all have,” Salesforce founder Mark Benioff told analysts. “Demand is very strong, and if you look at the last 23 years, Salesforce has proven to be incredibly resilient.”

However, in response to an analyst’s question about hiring, Amy Weber, chief financial officer at Salesforce, said: “We will continue hiring, but it will do so at a much more measured pace, and we are focusing on most of our cases. Will help implement top priorities. “

Weaver and Benioff both talked about introducing more discipline into the business as the fiscal year progressed. “This focus on discipline is being applied throughout our organization,” Weber said.

That chain will continue to expand into larger mergers and acquisitions, as co-CEO Taylor said earlier this year that Salesforce had “no plans for a component M&A in the near term,” but that it made a small acquisition last month of

“Right now, large-scale M&A is not part of our current plan. Obviously, like all strategic technology companies, we’re opportunistic, and I never say that, but it’s not something that’s on our current radar screens, “Weber told analysts.

Copyright © 2022 IDG Communications, Inc.

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