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It was a bit of a shock when it was announced that it wouldn't be providing a revenue forecast for next year.
The company has been doing well with revenue of over $8 billion for the quarter and a goal of $50 billion by the end of the year. When you combine the lack of a forecast with the recent executive exodus, it starts to paint a picture of unusual instability at the company.
Let's look at that forecast or not. The economy has become so uncertain that the company decided not to make a forecast for fiscal 2024. It is uncommon for a company to tell investors they are punting on a forecast, and it is the first time that the company has ever done it.
During the earnings call, Amy Weaver talked to investors.
Before I close, I’d like to share a few thoughts on Fiscal Year ‘24. As discussed, we are experiencing a very unpredictable macro environment, as our customers are working to ensure their businesses are also healthy for the long term. Compounding that dynamic is an unprecedented foreign currency market. Therefore, at this time, we believe it would be premature to provide revenue guidance for the next fiscal year.
Anyone who has followed this company will raise their eyebrows. The bombshell that co-CEO Taylor plans to step down was dropped simultaneously by the two companies.
Taylor decided to leave the big corporation to return to his roots as a company builder in order to get back to basics. That may not have been the entire story. According to the Wall Street Journal, there was tension between the two leaders and that the resignation might not have come as far out of left field as we were led to believe. This isn't the first time a company has tried to spin bad news as positive.
There were more shoes that needed to be dropped. Mark Nelson, the CEO at Tableau, decided to leave. It was purchased bySalesforce in the year 2019. Stewart Butterfield told his flock that he wanted to spend less time running a business and more time tending to his child.
Butterfield was replaced by Lidiane Jones, who was the GM of the Commerce Cloud, Marketing Cloud and Experience Cloud.
Prior to all of this,Salesforce had to deal with Starboard Value breathing down its neck, never a comfortable position. The company stressed its cost-cutting efforts in its most recent call.
It feels like a lot of news in a short period. What does it mean for the company's finances? We took a peek under the hood to see what was happening. Is this a short-term glitch in a bad year for all software-as-a-service companies or a series of moves that could be indicative of something more serious?
We want to see what datememe datememe can tell us about its health. I wonder if other companies are reporting the same results. To ask if there is a lesson to be learned from this situation.
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