ystemSalesforce Profit Fell 5 Times
CRM systems developer Salesforce reported revenues of $6.34 billion for the second quarter of fiscal year 2022, up 23% from a year earlier. The company’s published statements relate to a three-month period, which ended on July 31, 2021 calendar year.
During that time period, Salesforce earned $535 million in net income compared to $2.63 billion in profit a year earlier. Excluding one-time gains and expenses, Salesforce recorded so-called adjusted earnings of $1.48 per share.
Analysts polled by Refinitiv had expected the company to report such earnings of 92 cents per security on sales of $6.24 billion.
Salesforce’s cloud services business for sales and marketing generated $1.47 billion in revenue from subscription sales and support services in the second quarter compared to $1.28 billion a year earlier.
In the Service Cloud area, such revenues increased year over year from $1.3 billion to $1.6 billion. The company earned about $955 million in the Marketing and Commerce Cloud, compared to $746 million in the second quarter of fiscal year 2021.
The Salesforce Platform and Other division, which includes software products from previously acquired MuleSoft and Tableau, saw revenue increase 24 percent year over year to $1.88 billion.
Salesforce products continue to be in strong demand in the Americas, which generated $4.31 billion in revenue in May-July 2021 compared to $3.6 billion a year earlier. Revenues in Europe rose from $1.07 billion to $1.42 billion and in Asia Pacific from $485 million to $612 million.
For fiscal 2022, Salesforce expects adjusted earnings in the range of $4.36 to $4.38 per share on revenue of $26.2 to $26.3 billion, including $530 million in revenue from the Slack service it bought. Salesforce said the company has begun to actively use Slack as a tool to promote its products.
On the day the quarterly results were released, Salesforce’s stock price was little changed. Since the start of 2021, the company’s stock price is up 17 percent, while the S&P 500 Index is up 20 percent over the same period, CNBC noted.
