(AOF) – Salesforce announced quarterly results that beat expectations but revised its forecast downwards due to lower customer spending and the rising dollar. However, the cloud specialist has announced the upcoming launch of a vast multi-billion dollar share buyback program. In the second quarter of 2022, the American giant made a profit of $68 million. Excluding exceptional items, earnings per share came out at $1.19 against a consensus of $1.03. The turnover stood at 7.72 billion.
Analysts were targeting $7.69 billion, according to FactSet.
For the third quarter, which will include the annual Dreamforce conference in September – a major revenue driver for the company – the company expects EPS, excluding special items, of $1.20 to $1.21 per share and revenue of $7.82-7.83 billion. The market is targeting EPS, excluding exceptional items, of $1.28 per share for revenue of $8.07 billion.
For the full year, Salesforce cut its annual forecast. The company expects EPS, excluding exceptional items, of between $4.71 and $4.73 per share for revenue of between $30.9 and $31 billion.
It previously expected EPS, excluding exceptional items, of between $4.74 and $4.76 per share for revenue of between $31.7 and $31.8 billion.
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The lucrative database market
This mature global market is expected to generate more than $40 billion in revenue this year, compared to $22 billion in 2017, according to IDC. Contrary to its initial ambitions, SAP did not succeed in dethroning Oracle. This is mainly due to major developments in this market with the emergence of Amazon Web Services or Google Cloud. Benefiting from a significant competitive advantage as companies’ data hosts, these players have gained significant market share in recent years. However, faced with a growing corporate appetite for high value-added data, traditional players have a card to play.
Maximum staff turnover
Companies in the IT services sector have seen the departure of more than 20% of their workforce in twelve months. This trend is not unusual in the sector, but it is reaching an unprecedented scale, in a context of strong growth and good recruitment dynamics. In addition, employees have new requirements and aspirations. The main criterion is the flexibility of work and the way it is implemented in the company. The American-Indian company Cognizant saw around 35% of its 330,000 engineers leave the company in one year. Capgemini, grouping 32,000 French employees, recently suffered its first strike since 2008, with a demand for a collective increase in remuneration.