Salesforce Achieves Record Quarterly Performance... "Increased Cloud Service Demand Due to Pandemic"

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kim Suhwan] Salesforce.com, the world's largest CRM (Customer Relationship Management) software company, recorded its highest quarterly revenue ever, driven by a surge in demand for cloud services following the COVID-19 pandemic.

On the 25th (local time), according to CNBC and The Wall Street Journal (WSJ), Salesforce announced that its revenue for the second quarter reached $6.34 billion (approximately 7.4 trillion KRW), a 23% increase compared to the same period last year. This marks the highest quarterly revenue in the company's history and the first time it has surpassed $6 billion. It also exceeded Wall Street's forecast of $6.24 billion.

Salesforce stated, "As governments and companies worldwide pursue digital transformation strategies, our company has recorded a surge in revenue for five consecutive quarters."

By business segment, Salesforce's platform and other products division posted revenue of $1.88 billion (approximately 2.2 trillion KRW), up 24% from the same period last year.

The Sales Cloud division generated $1.48 billion (approximately 1.73 trillion KRW), a 15% increase year-over-year, while the Service Cloud division saw a 23% surge to $1.6 billion (approximately 1.87 trillion KRW) in revenue.

Salesforce also raised its future revenue outlook. The company expects annual revenue this year to reach $26.3 billion (approximately 30.7 trillion KRW), surpassing Wall Street's forecast of $26.01 billion (approximately 30.37 trillion KRW). Additionally, it projected this year's operating margin to be 1.8%, up from the 1.4% estimated last quarter.

Salesforce maintains its position as the global leader in the CRM sector. It entered the Korean market in 2007 and counts major companies such as Samsung Electronics, Hyundai Motor Company, and Amorepacific among its clients.

Last month, Salesforce completed the acquisition of the office messenger company Slack Technologies. This move is interpreted as a strategy to respond to the rise of competitor Microsoft in the enterprise collaboration platform market and to seek leadership in that market.

Since the COVID-19 pandemic, Salesforce's stock price has risen more than 75%.

On the day it announced its highest quarterly performance, Salesforce's stock price rose more than 2.6% in after-hours trading.

This content was produced with the assistance of AI translation services.