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Higher Cloud Adoption, Partnerships to Aid Salesforce (CRM) Q1 Earnings

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Salesforce's (CRM - Free Report) first-quarter fiscal 2022 results, scheduled for a May 27 release, are likely to reflect benefits from increased adoption of the company's cloud-based solutions.

The company is likely to have gained from a robust demand environment, with customers having undergone a major digital transformation. Notably, digitization has been strengthening the firm’s strategic relationships. Its ability to provide an integrated solution for customers’ business problems is the key driver.

Click here to know how the company’s overall first-quarter results are likely to be.

Higher Cloud Adoption a Tailwind

Salesforce’s diverse cloud offerings are likely to have helped expand its clientele, fueling top-line growth. The rapid adoption of the SaaS-based Salesforce platform highlighted solid demand for the company’s cloud-based solutions.

Further, improved customer experience is anticipated to have aided the cloud segment. The company’s focus on AI and substantial progress in its Einstein Analytics platform makes us optimistic about the upcoming quarterly results.

Moreover, Salesforce’s Customer 360 Truth platform that helps connect all the data from across sales, service, marketing, commerce, and build a single Salesforce ID for each customer is likely to have boosted its performance.

Additionally, the company’s initiatives to capitalize on overseas demand for cloud-based applications are anticipated to have bolstered the top line during the period in discussion.

Partner Ecosystem Helping Win New Deal

Significantly, Salesforce’s focus on building partnerships has not only helped it grab new deals but also expanded the firm’s operations internationally, which in turn, is anticipated to have fueled top-line growth.

Partnership agreements with the likes of Alphabet (GOOGL - Free Report) , Amazon (AMZN - Free Report) , Microsoft (MSFT - Free Report) , International Business Machines, Apple, HP, Dell and others for the firms’ cloud services are likely to have aided its performance as well during the fiscal first quarter.

Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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