Software company Salesforce posted optimistic quarterly revenue and profits this week, leading its shares to grow by 4% in extended trading.
According to the findings, Saleforce’s subscription and support revenue during the fourth quarter grew by 24.7% to $6.83 billion. The company’s shares also came at 84 cents per share, outpacing expectations of 74 cents.
The company’s revenue was higher than Wall Street projections and coincides with increased demand for Salesforce’s services from those shifting to hybrid work arrangements.
Additionally, the incorporation of Slack’s workplace app has helped Salesforce bring in more users according to Bret Taylor, co-CEO.
“Slack continues to exceed our expectations that I think is benefiting not only from the trend towards this new way of working … It’s also benefiting being a part of our Customer 360 portfolio,” said Taylor.
In 2023, Salesforce estimates its revenue to hit $32 to 32.1 billion, which is above the projection of $31.78 billion.
The spike in Covid-19 cases during late 2021 and early 2022 led companies to delay their office return plans and rely on services like Salesforce’s.
However, while the pandemic has seemingly subsided and many businesses prepare to bring workers back to the workplace, the permanent shift to hybrid and distributed working will continue to make companies like Salesforce relevant.