Salesforce.com Inc. raised the forecast for their revenue generated for the entire fiscal year. The forecast made by them is higher than the expectations provided by the analysts. But the company lowered its prospect for the next quarter. The expectations for the next quarter is lower than what they had previously predicted. This resulted in a decline of 2 percent in the shares recorded on Tuesday.
Thomson Reuters reported that the company said that they expect a profit value between 25 and 26 cents each share. On the other hand, various analysts had expected the value of each share to be nearly 30 cents each.
Mark Hawkins, who is the Chief Financial Officer, informed the investors over a conference call that this mixed outlook was caused because most customers opted for booking larger deals during the 4th quarter of the company and this resulted in a sharper drop in the company’s 1st quarter. He also said that the company is planning to carry out various partnerships and acquisitions to consolidate and strengthen their services and regain their status in the share market. The company also wishes to give its rivals Oracle and Microsoft a good competition.
The analysts had thought that since Salesforce is an older company, the chances of an increasing growth rate are minimal; however, the company shocked the analysts when the revenues of its software sales shot by 13.3 percent to roughly 3 billion dollars.
A prominent analyst, Steve Koenig from Wedbush said that according to the analysts the future times are filled with growth opportunities for companies like Salesforce.
In order to boost up their company, Salesforce has been thinking of expanding its features in most of their software. It aims to broaden all sorts of services that are available in its portfolio to ensure more customer satisfaction for all their users. To bring about a change in its status, the company had launched its artificial intelligence platform called Einstein in the month of October.
Salesforce has increased the revenue guidance of the entire year to a value ranging between 10.15 billion dollars and 10.20 billion dollars. The range was previously valued at a worth in the range of 10.1 billion dollars – 10.15 billion dollars. But Thomson Reuters expected the company’s revenues to be valued at 10.16 billion dollars. Salesforce is a pioneer and is known as the barometer for the cloud-computing technology. The company has reported that their revenue and profit for the 4th quarter was much higher than the targeted revenue. The reason behind this was in that particular quarter the marketing software services and demand for the sales based on cloud had increased drastically.