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Salesforce beats quarterly estimates on cloud demand, says CFO to step down

2024.08.28 19:00

(Reuters) – Salesforce (NYSE:) beat Wall Street expectations for second-quarter revenue and profit on Wednesday, as the business software giant benefited from higher spending on its enterprise cloud products.

Shares of the company rose more than 4% in extended trading.

Salesforce also said finance chief Amy Weaver will step down from the role but will remain in the position till a successor is appointed.

The company’s results reflect that client spending on its suite of cloud products is picking up as the software-as-a-service pioneer battles stiff competition from rising industry players like ServiceNow (NYSE:).

Salesforce reported revenue of $9.33 billion, while analysts on average had expected $9.23 billion.

However the firm forecast third-quarter revenue below estimates, signaling that a full recovery in cloud spending is still yet to come.

The company expects third-quarter revenue between $9.31 billion and $9.36 billion, compared with the average analyst estimate of $9.41 billion, according to LSEG data.

Salesforce’s revenue grew only 8% this quarter, its slowest pace in over a decade, indicating softer growth at the company.

After years of rapid progress and capturing a large chunk of the data cloud market, Salesforce is entering a more mature phase of growth, analysts at TD Cowen said last week, as it leverages margins and focuses on costs.

© Reuters. FILE PHOTO: A logo of Salesforce is seen at its exhibition space, at the Viva Technology conference dedicated to innovation and startups at the Porte de Versailles exhibition center in Paris, France June 16, 2022. REUTERS/Benoit Tessier/File Photo

The company reported second-quarter adjusted operating margin of 33.7%, while analysts polled by Visible Alpha expected 32%.

Salesforce reported an adjusted profit per share of $2.56, beating estimates of $2.36.



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