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Salesforce Stock Leaps On 2022 Revenue Forecast Boost Ahead of Investor Day

Salesforce nudged its 2022 revenue forecast to between $26.25 billion to $26.356 billion ahead of an investor day presentation in San Francisco.

Salesforce.com  (CRM) - Get salesforce.com, inc. Report shares jumped higher Thursday after the cloud and business software group boosted its 2022 revenue guidance ahead of its annual investor day conference.

Salesforce said it sees revenues for its 2022 fiscal year in the range of $26.25 billion to $26.356 billion, a modest boost to the forecasts it published following second quarter earnings in August. Looking into 2023, Salesforce initiated its revenue guide in the range of $31.65 billion to $31.8 billion, with a non-GAAP operating margin of around 20%, a 150 basis point improvement to its current 2022 forecast.

Salesforce will kick-off its investor day presentation at 8:00 am Pacific Time in San Francisco. 

Salesforce shares were marked 4.8% higher in early trading Thursday to change hands at $271.800 each, a move that would bump the stock's year-to-date gain to around 22.1%. 

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Last month, Salesforce posted stronger-than-expected second quarter non-GAAP earnings of $1.48 pre share on sales of $6.34 billion, and forecast current quarter earnings of around 92 cents per share.

"Business momentum remains strong across all clouds, customer sizes, and regions. F2Q had strong new business, larger deal sizes, and better revenue retention," said Oppenheimer analyst Brian Schwartz, who carries an 'outperform' rating with a $290 price target on the stock.

"It's clear Salesforce is becoming an even more strategic vendor and is well-positioned to capitalize on the accelerating digital transformation spending in the customer market," he added. "Also, the margin fears have subsided under the new CFO (Amy Weaver). However, organic cRPO (current remaining performance obligation) guidance may underwhelm, limiting near-term multiple expansion until Slack synergies are proven out over the next few quarters."