Business software provider Salesforce.com Inc. CRM -0.78% logged higher revenue in the fourth quarter and raised its annual sales outlook, as the company looks to maintain its leadership role in cloud-based services that have expanded in response to the Covid-19 pandemic.
The San Francisco-based company said its sales rose to $7.33 billion for the three months ended Jan. 31, compared with $5.82 billion a year earlier. Analysts were expecting $7.24 billion in sales for the quarter after Salesforce CRM -0.78% issued guidance below expectations late last year.
For fiscal 2023, the company is now expecting sales to between $32 billion and $32.1 billion, an increase from its previous range between $31.7 billion and $31.8 billion. It also raised its outlook for the current quarter.
“This year has just been characterized by a lot of complexity, from the pandemic, to inflation, supply chain, and now, this war in Europe, but the thing that really has endured is I think this trend towards digital transformation,” co-Chief Executive Bret Taylor said in an interview. He added, “The demand environment continues to be very strong.”
Salesforce thrived as the pandemic pushed entire industries and governments to purchase digital tools as they shifted to remote work. The company expanded its arsenal of services after it agreed to buy messaging company Slack Technologies Inc. in a cash-and-stock deal valued at $27.7 billion in December.
Its shares are up about 24% over the last two years, but down 16% so far this year amid a broad tech selloff spurred by inflationary concerns and Russia’s invasion of Ukraine.
Shares of Salesforce were up roughly 4% in after-hours trading. The stock closed at $208.89 on Tuesday, down 1.6%.
The fourth-quarter results were the first under Salesforce’s second attempt at its co-CEO structure. The company has been led by CEO Marc Benioff following the departure of co-CEO Keith Block in February 2020.
In November 2021, the company elevated Mr. Taylor to the role of co-CEO and vice chairman to serve alongside Mr. Benioff. He previously served as president and chief operating officer.
Salesforce logged a loss of $28 million for the fourth quarter, down from a gain of $267 million in the year-ago period. Adjusted earnings of 84 cents a share were below of analysts’ expectations of $1.
—Aaron Tilley contributed to this article.
Write to Denny Jacob at [email protected]
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Appeared in the March 2, 2022, print edition as ‘Salesforce Posts Revenue Gain, Lifts Outlook.’
