Salesforce Trims Full-Year Outlook in Response to Coronavirus

Gene Naumovsky

While still posting gains, Salesforce lowered its full-year out look and is reviewing its 2024 targets.

After initially lowering its full-year projections due to the pandemic, SaleForce reported estimates of full-year sales of around $20 billion, according to the Wall Street Journal. Inc. reduced its full-year earnings due to payment relief to select consumers and recent investments related to the coronavirus pandemic. The company reported on Thursday that first-quarter sales grew 30 percent (from last year) and have reached $4.87 billion. Meanwhile, earnings per share dropped to 11 cents from 49 cents, but Wall Street held projections of $4.85 billion in sales and per-share earnings of 1 cent for the company.

Before releasing its new full-year sales projections, Salesforce reported estimates of $21.1 billion, but now the company’s 17 percent growth for the year will be its slowest “pace of expansion.”

The last fiscal year saw Salesforce post a 29 percent growth in sales. Now, the company’s established target of $35 billion in sales in 2024 is being reviewed.

In recent news, Salesforce partnered with state governments, including those of New York and California, to roll out new services intended to aid companies in bringing back employees after quarantine.

The company reached a $15 billion deal with data analytics provider Tableau Software last year, and after buying Vlocity Inc., a cloud-software provider, CEO Marc Benioff announced in February that Salesforce would take a break from deal-making.

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Economics, Finance and Investing