Salesforce Continues To Grow In Third Quarter FY 2022
The CRM giant projects a full year financial year 2023 revenue guidance of around $31.7 to $31.8 billion, YOY growth of around 20 percent.
Salesforce has announced its third quarter fiscal 2022 results, revealing continued growth for the industry-leading CRM platform. Notably, the company posted a 27 percent year-over-year (YOY) increase thanks to third quarter revenue of $6.86 billion.
“We delivered another phenomenal quarter, fueling strong revenue growth, margin and cash flow,” said Marc Benioff, Chair and CEO of Salesforce.
“Salesforce is more relevant and strategic than ever as every company accelerates their digital transformation journey. Just as we’ve helped our customers navigate the pandemic, we’re now guiding them toward greater growth, customer success, health and safety, and trust. With the tremendous strength of our Customer 360 platform and Slack, we’re on track to reach $50 billion revenue in FY26.”
The $6.86 billion in quarterly revenue can be derived from $6.38 billion in subscription and support revenues (increase 25 percent YOY) and $0.48 billion in professional services (increase 45 percent YOY).
Operating margins of third quarter GAAP came in at 0.6 percent while non-GAAP was 19.8 percent. In addition, GAAP diluted earnings per share were revealed at $0.47 where non-GAAP showed $1.27.
In a conference call hosted by Salesforce, Benioff and Bret Taylor, Vice Chairman and Co-Chief Executive Officer discuss the company’s success in the third quarter. According to the conversation, the company attributes its success to their expanded product portfolios, innovative operating models, and new management team’s hard work.
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The stellar results put Salesforce in a great position to continue growing into Q4. The report suggests fourth quarter FY22 revenue guidance growing around 24 percent YOY and in first quarter FY23, revenue guidance growing around 21 percent.
“Our disciplined approach continues to deliver record levels of operating margin this year,” said Amy Weaver, President and CFO.
“During the third quarter, we again executed against the strong demand environment in front of us. Slack saw another strong quarter, and we are pleased with Slack’s representation in our largest deals. In this new world, Slack and our Customer 360 have never been more relevant.”