Why Salesforce Stock Soared Today
Actions of salesforce.com (NYSE: CRM) jumped on Friday, following the publication of the cloud computing leader’s first quarter of fiscal 2022 results. As of 3:15 p.m. EDT, the tech share price has risen more than 5%.
Salesforce revenue jumped 23% year-over-year to $ 6 billion. the Software The giant’s operating cash flow, in turn, soared 74% to $ 3.2 billion, while its free cash flow increased 99% to $ 3.1 billion.
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Businesses are accelerating their move to the cloud during the coronavirus pandemic – a trend that is driving demand for Salesforce offerings. “Our first quarter performance was strong across all financial metrics,” CFO Amy Weaver said in a press release. “We have seen record levels of new business and strength for all products, all regions and all customer sizes.”
These strong results prompted Salesforce to increase its revenue and cash flow forecast. Management now expects sales to increase by approximately 22%, while operating cash flow to increase 13%.
“With incredible momentum across our core business, we are increasing our revenue forecast for this fiscal year from $ 250 million to approximately $ 26 billion and non-GAAP. [adjusted] 18% operating margin, “said CEO Marc Benioff.” We are on track to reach $ 50 billion in revenue in FY26. “
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