Shulou(Shulou.com)11/24 Report--

According to news in the morning of September 22, Beijing time, shares of American enterprise software company Salesforce announced a new long-term profit target on Wednesday, indicating that the company is committed to improving operational efficiency. Affected by the news, the stock rose nearly 3% in after-hours trading on the day.

During the COVID-19 epidemic, with the rise of home-office craze, major companies have increased the use of cloud computing software, making a number of cloud computing software companies, including Salesforce, ushered in a highlight moment during the epidemic. But as rising US prices triggered interest rate hikes, investors began to abandon such stocks.

Therefore, the management of cloud computing companies have stressed cost-saving plans, and advanced the profit time to re-attract the interest of the capital market. Salesforce also said it would be more cautious in recruiting talent.

The company's CFO, Amy Weaver (Amy Weaver), further unveiled its new targets for fiscal year 2026 on the investor open day. She revealed that Salesforce plans to adjust its operating margin to 25 per cent, compared with the 20 per cent target disclosed a year ago for fiscal year 2023. In the quarter ended July 31, the company made an operating profit of 19.9%.

Salesforce said it plans to adjust sales and marketing spending to keep this below 35 per cent of revenue by 2026 by increasing self-service, partner alliances and improving the efficiency of salespeople. In terms of marketing, the company hopes to rely on proprietary marketing channels. According to GAAP, sales and marketing expenses in the July quarter accounted for more than 44 per cent of Salesforce revenue.

In addition, Salesforce plans to control general and administrative costs, in part through the assessment of real estate assets in mixed offices.

Weaver reiterated her revenue target of $50 billion for fiscal 2026 announced a year ago, but said that figure now takes into account the $2 billion exchange rate loss incurred during the year.

Salesforce shares closed at $147.63 on the New York Stock Exchange on Wednesday, down 1.45% from the previous session and a 52-week low. Weaver said the company had begun to buy back its own shares through its first share buyback program.

Welcome to subscribe "Shulou Technology Information " to get latest news, interesting things and hot topics in the IT industry, and controls the hottest and latest Internet news, technology news and IT industry trends.