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Salesforce Stock Climbs As Outlook Tops Views Ahead Of Slack Deal Closing

Salesforce stock jumped late Thursday as the enterprise software maker’s April-quarter earnings and revenue topped analyst estimates. Salesforce.com‘s (CRM) second-quarter guidance also came in above expectations as investors await the closing of the acquisition of Slack Technologies (WORK).




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A leader in software-as-a-service, Salesforce reported earnings after the market close. Salesforce stock rose 4.1% to near 235 in extended trading on the stock market today.

Salesforce earnings climbed 13% from a year earlier to 97 cents per share on an adjusted basis, excluding investment gains, the company said. In addition, revenue rose 23% to $5.96 billion.

A year earlier, Salesforce earnings were 70 cents a share on sales of $4.85 billion. Analysts expected Salesforce to report earnings of 88 cents a share on sales of $5.89 billion.

The enterprise software maker said current remaining performance obligations, or CRPO bookings, rose 23% to $17.8 billion. That topped analyst estimates of $17.28 billion. CRPO bookings are an aggregate of deferred revenue and order backlog.

Salesforce Stock: Revenue Outlook Tops Estimates

For the current quarter ending in July, Salesforce’s revenue outlook came in above expectations. The software maker expects revenue in a range of $6.22 billion to $6.23 billion vs. estimates of $6.15 billion.

The company forecast earnings in a range of 91 cents to 92 cents a share. Analysts had projected a profit of 85 cents a share.

For full-year fiscal 2022, Salesforce projected operating margin of 18%, just above analyst estimates of 17.7%. Margin improvement has been a long-running issue for the software maker.

Salesforce sells software under a subscription model. Its software helps businesses organize and handle sales operations and customer relationships. The company has expanded into marketing, customer services and e-commerce.

Heading into the earnings report, Salesforce stock owned a Relative Strength Rating of 30 out of a possible 99, according to IBD Stock Check-Up.

Slack reports earnings on June 3. Salesforce expects the Slack acquisition to close late in the July quarter. Salesforce in December agreed to buy Slack for $27.7 billion in cash and stock. Slack sells workplace collaboration software. Salesforce said it expects Slack to contribute $500 million in revenue in fiscal 2022.

Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on 5G wireless, artificial intelligence, cybersecurity and cloud computing.

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