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Salesforce Jumps as Next FY Guidance, 4th Revision to Current Suggests Strong Mome By Investing.com

by Mike Robinson

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© Reuters.

By Dhirendra Tripathi

Investing.com – Salesforce stock (NYSE:) climbed more than 6% Thursday as the company’s latest forecasts suggested strong sales momentum at the company that are likely to carry into the next year.  

It has set its guidance revenue at $31.72billion for the next fiscal year. That’s 21% more than the updated estimate.

Current-year revenue is now at $26.30billion, which represents a 21% increase over the $26.25billion midpoint in the last month’s estimates. The new guidance translates into a growth of around 24% in the current financial year from last year’s $21.25 billion.

A forecast of 21% growth in next financial year’s revenue after a likely 24% jump this time indicates that many of the tailwinds for software companies created by the pandemic are still intact.

Demand for the company’s cloud-based software and its recent acquisition of office messaging application Slack has been strong as most people continue to work remotely, accentuating demand for its products.

 

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