Salesforce.com Inc. (NYSE: CRM) jumped Friday, lifting internet-related exchange traded funds, after the cloud-based software company topped expectations and raised its outlook.
Meanwhile, Salesforce shares jumped 5.9%. CRM makes up 8.7% of IGV, 4.5% of FDN, and 4.2% of PNQI.
Salesforce revealed fiscal first quarter net income of $469 million, or 50 cents a share, compared with $99 million, or 11 cents a share in the same period last year, MarketWatch reports. Revenue also rose to $5.96 billion from $4.87 billion year-over-year.
“We had the best first quarter in our company’s history,” said Marc Benioff, Salesforce chairman and chief executive, in a statement. “We believe our Customer 360 platform is proving to be the most relevant technology for companies accelerating out of the pandemic.”
“We’re on our path to reach $50 billion in revenue in FY26,” Benioff added.
Gavin Patterson, Salesforce’s chief revenue officer, explained that while different parts of the world have re-opened their economies to varying degrees, there wasn’t a single area that was slower than others over the quarter, CNBC reports.
Looking ahead, the projected full-year adjusted operating margin widened to 18% from 17.7%.
“Our decision to raise fiscal 2022 revenue is reflective of our Q1 performance and our confidence in our ability to execute for the rest of the year,” Amy Weaver, the company’s finance chief, said, adding that the guidance takes into account that some travel will rebound but not close to pre-pandemic levels.
“We’ve simply learned how to work effectively and how to serve our customers effectively without being on a plane every day,” she added.
Morgan Stanley analysts have also upgraded their outlook on Salesforce stock to buy from hold earlier this month.
“While concerns on M&A appetite and durable margin expansion may linger, leading franchises do not stay cheap for long, particularly amidst the strong demand backdrop we foresee over the next several years,” according to Morgan Stanley.
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