By Dhirendra Tripathi
Investing – Salesforce (NYSE:CRM) shares were higher by more than 5% in Friday’s premarket as a record first quarter pushed the company to raise its revenue guidance for the 2022 fiscal year to $25.9 billion to $26 billion.
Online software providers like Salesforce are reaping the reward of more companies continuing with the work from home option or going for a hybrid model even as economies open up amid increasing vaccination rates.
The company expects full-year adjusted profit (non-GAAP) between $3.79 and $3.81 per share.
Salesforce Chair & CEO Marc Benioff attributed the revised guidance to “incredible momentum throughout our core business.”
The company benefited from increased demand for its core CRM solutions and Customer 360 platform, riding out of the pandemic while grabbing new opportunities.
It had earlier forecast a revenue of $25.65 billion to $25.75 billion for the year.
Salesforce President and Chief Financial Officer Amy Weaver reiterated the company is keeping “pace toward our goal of $50 billion in revenue in FY26.”
The company also initiated second quarter revenue guidance of $6.22 billion-$6.23 billion, up approximately 21% year-over-year.
Total first quarter revenue was $5.96 billion, an increase of 23% year-over-year. On an adjusted basis, Salesforce earned $1.21 per share, beating estimates of 88 cents per share.