At present, technicals are suggesting a neutral stance, with key resistance above at $166.03 and major support below at $136.07.

Overview

Salesforce, Inc. is an American provider of cloud-based software with its main office in San Francisco, California. It offers customer relationship management software and apps with a focus on sales, customer service, marketing automation, analytics, and application development.

Financials

Salesforce’s financial year ended on the 31^st of January 2022, when it saw a $5.2bn rise in revenue and a $3.6bn rise in gross profit. EBITDA also rose by $835m, however, net income came in at $1.4bn compared to $4.1bn in 2021. The primary reason for this was the increase in expenses. The company saw a $3.4bn increase in operating expenses and an increase of $1.5bn in the cost of goods sold. As a result, the earnings per share fell to $1.51 from $4.48 in the prior year. Furthermore, total liabilities went up to $37.1bn from $24.8bn, but total assets offset this rise as the value of assets rose to $95.2bn from $66.3bn. Finally, the firm’s shareholder equity jumped from $41.5bn in 2021 to $58.1bn in 2022.

Summary

Looking at the company’s financials, all-in-all, they are positive. The net income has seen a chunky decline but the revenue and profit continue to grow. The current economic situation led to higher costs of goods and expenses within the business, which was one of the reasons for the decline in income. Nevertheless, Salesforce still holds strong value within its assets over liabilities and demonstrates a gradual progression in other aspects of its financial business. As the world begins to step away from a global recession in the next 18-24 months, Salesforce should only continue to grow and expenses should level out against revenue and net income. At present, technicals are suggesting a neutral stance, with key resistance above at $166.03 and major support below at $136.07. Salesforce is set to report earnings tomorrow which can stimulate movement in either direction. Hence, theoretically, a positive earnings report should edge the price higher (bullish), whereas a negative reading could see the price fall (bearish).