Salesforce‘s CRM second-quarter fiscal 2022 results, slated for an Aug 25 release, are likely to reflect benefits from higher adoption of the company’s cloud-based solutions.
The company is anticipated to have gained from a robust demand environment, with customers having undergone a major digital transformation amid the business disruptions caused by the COVID-19 pandemic. Its ability to provide an integrated solution for customers’ business problems is the key driver.
Click here to know how the company’s overall fiscal first-quarter results are likely to be.
Accelerated Cloud Adoption Likely to Have Been a Positive
The rapid adoption of the SaaS-based platforms amid the ongoing work-from-home and online learning trend is expected to have spurred demand for the company’s cloud-based solutions. Salesforce’s diverse cloud offerings are likely to have helped expand its clientele, fueling top-line growth.
The company’s initiatives to capitalize on overseas demand for cloud-based applications are anticipated to have bolstered the top line during the period in discussion.
Salesforce’s Customer 360 Truth platform that helps connect all the data from across sales, service, marketing, commerce, and build a single Salesforce ID for each customer is likely to have boosted its performance.
Further, improved customer experience is anticipated to have aided the cloud segment. The company’s focus on AI and substantial progress in its Einstein Analytics platform makes us optimistic about the upcoming quarterly results.
Partnership Ecosystem to Have Aided Q2 Performance
Additionally, Salesforce’s focus on building partnerships is anticipated to have fueled top-line growth. Strategic partnerships has not only helped it grab new deals but also expanded the firm’s operations internationally.
Partnership agreements with the likes of Apple AAPL, Amazon AMZN, Alphabet GOOGL, Microsoft, HP, Dell, International Business Machines and others for the firms’ cloud services are likely to have aided its performance as well during the fiscal second quarter.
Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.