Salesforce boosts its profit prediction for 2023, despite challenging economic conditions

Salesforce Inc raised its full-year adjusted profit forecast after it beat quarterly revenue estimates on strong demand for business software as companies increasingly adopt hybrid work models.

The San-Francisco-based company’s shares rose about 7% in extended trading after having fallen about 37% this year as investors moved out of growth stocks on a series of bad news including high inflation in the United States and the Ukraine crisis.

Technology companies are spending heavily on software to improve efficiencies and incorporate modern-day workflows including hybrid work.
Sales jumped 24% in the first quarter, but operating margins fell sharply as costs rose.
Sales were ahead of analysts’ estimates, but the company marginally lowered its revenue estimates for the fiscal year ending January 2023.

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