Early this week, I looked at the quarterly results of listed cybersecurity companies and wondered why there wasn’t more venture capital investment in security-related startups. In an environment where it’s difficult to grow revenue, wouldn’t the preeminent technology sector be sure to have smooth sailing with proven demand?
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This morning, I would like to broaden my perspective and take stock of new quarterly results from a more diverse group of companies and say that things are not quite that way. actually that bad For technology companies. New data from Salesforce, Zuora, Okta, Nutanix, and Snowflake reveals that several technology sectors are doing better than many expected.
Unsurprisingly, this has boosted the stock prices of some major startups and improved the overall mood for technology valuations. Let’s talk about turkey:
sales force
Salesforce reported revenue of $8.72 billion. Third quarter of fiscal year 2024along Analyst predictions. This gave the SaaS giant a profit of 11%, especially considering that the company expects revenue of $9.23 billion for the current quarter, up from $9.18 billion. It’s not a surprising number. This corresponds to an increase of approximately 10%.
So why did Salesforce’s stock price rise more than 9% this morning? The company beat third-quarter earnings estimates, nearly met expectations for fourth-quarter earnings, and raised its full-year earnings forecast.
Salesforce may no longer be the growth behemoth it once was, but it’s a cash-generating machine that’s channeling excess capital into stock buybacks, and investors are eyeing its improving profitability.