Salesforce forecasts current quarter profit below estimates

NEW YORK: Inc forecast current-quarter profit below analysts’ estimates on Wednesday, as the cloud-software maker invests heavily to boost sales and fend off rising competition. San Francisco-based Salesforce has been reaping the benefits of a trend of companies increasingly turning to cloud-based services, but faces stiff competition from Microsoft’s Dynamics 365, which competes with Salesforce’s flagship Sales Cloud offering, and from Oracle.
Asked about the company’s forecast for the third quarter, Chief Financial Officer Mark Hawkins highlighted the company’s $21 billion in remaining performance obligation, which represents future revenue under contract that has not yet been recognised. That figure was up 36 per cent year-to-year. “Wall Street can focus on Wall Street,” Hawkins said on a call on Wednesday afternoon. The company forecast third-quarter profit between 49 cents and 50 cents per share, and revenue of $3.36 billion to $3.37 billion. — Reuters