Salesforce president on record Q2: 'Our products are just more relevant than they've ever been'
Salesforce (CRM) delivered yet another record quarterly report as the cloud-based software giant's products continue to benefit from more companies embracing the all-digital, work-from-anywhere world.
"Our products are just more relevant than they've ever been. I think every CEO is realizing that this pandemic is not going away — we're in a new pandemic world, an all-digital, work-from-anywhere world. And companies are investing in their digital infrastructure so that they can set themselves up to grow in this new world," Salesforce president and COO Bret Taylor told Yahoo Finance Live on Thursday.
On Wednesday, Salesforce reported better-than-expected second-quarter results, with quarterly revenue crossing $6 billion for the first time. For the second quarter, Salesforce posted $6.34 billion in revenue, up 23% year-over-year. The cloud giant delivered adjusted earnings per share of $1.48, well ahead of estimates of 92 cents per share.
Salesforce also raised its guidance for fiscal 2022 to a range of $26.2 to $26.3 billion, up $300 million from the prior guide, and representing approximately 23% to 24% year-over-year growth. The company expects to reach $50 billion in annual revenue by fiscal 2026.
Salesforce's Sales, Service, Marketing & Commerce, Platform, Tableau, MuleSoft, and Slack are all billion-dollar-plus products, or what CEO Marc Benioff has dubbed, "a herd of unicorns." In July, Salesforce closed on its $27.7 billion record acquisition of messaging app Slack Technologies, which will play a critical role in its bet on a digital work-from-anywhere future.
As the debate about the future of work continues across corporate America, Taylor contends that with the Delta COVID-19 variant, more CEOs are realizing, "This isn't just going to snap back." As such, boards and leadership teams are "realizing that investing in your digital employee experience, your digital partner experience, and your digital customer experience is paramount if you want to go grow in this new normal," Taylor added.
In this new normal, tools like Slack "represent a vision for a new way to work" that is more asynchronous and provides more flexibility for employees. Taylor added that Slack also offers new tools and workflows, allowing a sales team, for example, to close a quarter "better and faster."
Julia La Roche is a Correspondent at Yahoo Finance. Follow her on Twitter.
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