Salesforce Inc cut its full-year revenue forecast to below market estimates

Salesforce Inc on Wednesday cut its full-year revenue forecast to below market estimates over a sharp hit from a strong dollar and “measured” purchases from its customers, sending shares down 6% in extended trading.

Analysts had warned that macroeconomic factors such as inflation and slowing U.S. growth could hurt the spending power of small- and medium-sized businesses that use Salesforce products for managing customer relationships, reports Reuters.

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Cloud software companies with significant operations outside of the United States, including Microsoft Corp, Accenture Plc and IBM Corp, have all tempered their forecasts due to a stronger dollar.

Salesforce now expects revenue of $30.90 billion to $31.00 billion, below estimates of $31.73 billion as per IBES data from Refinitiv. In May, the company had forecast revenue of $31.70 billion to $31.80 billion.

The San Francisco, California-based company’s revenue forecast accounts for a near $800 million forex hit, a third higher compared to its outlook in May.

The company’s second-quarter results topped Wall Street expectations, with adjusted profit of $1.19 per share coming 17 cents higher than estimates, and revenue of $7.72 billion slightly higher than estimates of $7.70 billion.

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