(Reuters) – Salesforce.com Inc cut its annual revenue and profit forecasts on Thursday, as the cloud-based business software maker allowed clients to defer payments and provided its sales team one-time commissions amid the COVID-19 pandemic.
FILE PHOTO: The company logo for Salesforce.com is displayed on the Salesforce Tower in New York City, U.S., March 7, 2019. REUTERS/Brendan McDermid
Shares fell 3% in choppy extended trading as investors shrugged off a first-quarter revenue beat.
Most of the expenses were recorded in the first quarter, including $140 million in sales commissions, Chief Executive Officer Marc Benioff said on an earnings call.
Benioff said organizations around the world are accelerating their plans for work-from-anywhere environment, helping Salesforce sign more deals.
“I’ve been on more sales calls with more CEOs in the last two months than at any time in my career,” Benioff said.
The company has beefed up its cloud business through acquisitions