Salesforce (CRM 2.50%) has been racking up some impressive earnings and growth over the past several quarters. In this video clip from "The Virtual Opportunities Show" on Motley Fool Live, recorded on Feb. 8, Fool contributor Jose Najarro gives a detailed report on the company's current operations and plans going forward.
Jose Najarro: The company I'm going to be talking about is Salesforce. For those not familiar with Salesforce, they are a company that focuses in CRM, which is customers relations management. If you're some form of company, you want to collect data on what your customer is doing, where they're buying, how much they're buying, what location they're buying the most, at what time they purchased? That's who you usually go with. Salesforce.
They also do a lot of other things outside of just customers relations. Let me just share my screen with the presentation. I have set up here. Let me set this up. Let me do a quick share screen. Salesforce, for example, they hit numerous products. For example, in quarter three they had about, I think it was over $6.5 billion in revenue. They deal with sales services. Like I mentioned, customers relations within sales you want to see how your customers are reacting, what's the best way to sell with them. They also have other platforms and others. They recently acquired Slack. A few quarters ago they have platforms like Slack. They also have a lot of visualization products. They work in services like marketing, e-commerce, and then data analytics.
We can see the two biggest players are definitely the sales department and the service departments. We can see in their most recent quarter all up strong double-digits, even the big revenue consumers for them. The smaller ones are definitely growing stronger. We can see platforms, things with their recent acquisition with Slack, that one's growing around 51% year-over-year.
One place I would definitely recommend is checking out their investors' relations. They have all the different products that they fit. You can click them on, and see some other solutions that are available to them. If we can take a quick look at their most recent quarter. First, fourth-quarter results are expected to be released on March 1 of 2022 after the market close, about a little bit less than a month from now.
I also want to show some of the updates of some of the things they're doing. In Feb. 1, they added more solutions to their safety cloud. Right now with COVID, something that businesses are very hard to manage is, if we're doing employee testing, if we're doing customer testing to some extent, how do we keep that data safe? How do we make sure we're keeping that data, not just safe but using it properly?
They're increasing their products in their safety cloud to help mitigate and manage better things like testing, like health, and entry protocols to create safer in-person experiences at events and in workplaces. Imagine if you are a business that deals with a lot of maybe concerts, for example, you might want to go with Salesforce, use this safety cloud platform to make sure you're using the best tools to make sure that is a safe event.
In Jan. 13, one thing that I do like about Salesforce is if you go to their investors' relations, they share a lot of great insight of the overall market. One thing that they're seeing is that consumers continue to increase the amount of purchasing they do online. One of the markets that they're really focusing right now is to make sure that companies have strong products to be able to take advantage of this still digitization within the market.
They're working on tools to improve the future of e-commerce, enabling companies to improve their systems and develop more flexible digital strategies. Just a quick highlight on third-quarter revenue. Revenue this most recent quarter was up 27%. They also gave a guidance for the full year of 2022, and that will be roughly 24% year-over-year growth. They raised their guidance for the full year again, and again. Salesforce seems to be a strong company. They also have a positive cash flow from operations of about $400 million, and they did initiate a first-quarter fiscal year 2023 revenue, which they expect to be somewhere around 21-22%. This is a nice, profitable business in form of cash flow from operations also growing at strong levels.
Finally, they are in a strong emerging market. I know, metrics, I think not the best thing to take a quick look at, but I sometimes look at them just to see historical levels. It doesn't really tell me, hey, buy or sell. It just tells me hey, how is it doing compared to previous times. Salesforce forward EV-to-EBITDA ratio. Right now sitting at about 21.99, I believe, most big tech, if we take a look at the top 5 tech companies right now, they're sitting in the high 25s levels. It doesn't seem like it's completely overvalued.
Right now, Salesforce has taken quite a hit. In the past year, it is down about 10%. This one I feel it's a very, very boring company. We don't get to hear too much about it. Those are just my overall thoughts on Salesforce at the moment. It's a pretty interesting company, I definitely enjoy the market that they are in. Not one I'm a shareholder. But now with current downturns, when I wouldn't mind doing a little bit more research on in the future.
