Salesforce Delivers Solid Results to Battered Investors; Sees Strong Demand; Modest FVE Cut to $305

Investors looking for signs of broader enterprise software slowdowns will have to look elsewhere after wide-moat Salesforce reported solid results in the face of a variety of macroeconomic headwinds. Both revenue and non-GAAP operating margin a bit better than our expectations, while full-year revenue guidance was lowered slightly entirely due to the surging dollar, and full-year non-GAAP operating margin guidance was raised modestly. Management acknowledged the same macro headline issues we see every day but noted the firm is seeing no weakness in demand and that its pipeline for the year remains robust. Given the macro storm clouds, we are taking our estimates from above previous guidance, to more in-line with new guidance, and are therefore lowering our fair value estimate to $305 per share, from $320 per share. Salesforce remains one of our top software picks and we view shares as attractive, as we think investors are overly pessimistic on near-term fears.