Cloud Stocks: Salesforce Leverages Mulesoft And Tableau Acquisitions Successfully

Salesforce (NYSE: CRM) recently announced its first-quarter results that continued to surpass market expectations. It launched several upgrades recently that focused on adding data analytics capabilities for its product portfolio pushed by its Mulesoft and Tableau acquisitions.

Salesforce’s Financials

Salesforce’s revenues for the first quarter grew 20% to $5.96 billion, above analyst estimates of $5.89 billion. Adjusted earnings of $1.21 per share was also better than the market’s forecast of $0.88 per share.

By segment, Subscription and support revenues grew 21% to $5.54 billion, and Professional services and other revenues grew 47.24% to $427 million.

For the second quarter, Salesforce forecast revenues of $6.22-$6.23 billion with an EPS of $0.91-$0.92. Analysts forecast revenue of $6.14 billion and an EPS of $0.87. Salesforce expects to end the current fiscal year with revenues of $25.65-$25.75 billion and an EPS of $3.79-$3.81. Analysts forecast revenues of $25.7 billion and an EPS of $3.44 for the year. Salesforce’s projected revenue contribution from Slack fell by $100 million to $500 million for the year as a result of a delay in deal closure. The deal is now expected to close toward the end of the second quarter. Salesforce had announced its acquisition of Slack in December 2020 for $27.7 billion.

Salesforce’s Expanding Analytics Tools

Salesforce has been expanding its product line-up across the entire portfolio. It added services that deliver advanced analytics to businesses, helping them make decisions faster. For MuleSoft, Salesforce announced a new release of Anypoint Platform with DataGraph. The release will help developers instantly discover, access, and serve data from multiple existing APIs with a single query, without writing any additional code. Customers across industries will be able to create seamless digital experiences faster. As the number of apps and systems used within an organization continues to grow, integration becomes even more complex and slows down the business. Anypoint DataGraph allows organizations to compose data faster, by consuming data from multiple APIs with just a single GraphQL query.

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Disclosure: All investors should make their own assessments based on their own research, informed interpretations and risk appetite. This article expresses my own opinions based on my own ...

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