Earlier this week, the quarterly results of public cybersecurity companies left us scratching our heads as to why there isn’t more venture capital investment in security startups. In an environment where revenues are difficult to generate, surely premium technology sectors must sail with the wind if there is so much proven demand?
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This morning, I want to broaden our perspective and use a set of new quarterly results from a more diverse group of companies to point out that this is not the case Actually that bad For technology companies. New data from Salesforce, Zuora, Okta, Nutanix, and Snowflake shows that many technology sectors are performing better than many people expected.
Understandably, this has pushed up the share prices of some key startups, and led to positive feedback on technology valuations overall. Let’s talk Türkiye:
Sales force
Salesforce reported revenue of $8.72 billion in Third quarter of fiscal year 2024in line with Analysts’ expectations. This resulted in an 11% gain for the SaaS giant, which isn’t an amazing number, especially since the company expects to generate revenue of $9.18 billion to $9.23 in the current quarter, which represents an increase of about 10%.
So why is Salesforce stock up more than 9% this morning? It beat earnings expectations for the third quarter, forecast fourth-quarter revenue broadly in line with estimates, and boosted its profitability outlook for the full fiscal year.
Salesforce may no longer be the growth juggernaut it once was, but it has become a cash-generating machine that pumps out excess capital to buy back its shares, and investors seek to improve its profitability.