Salesforce CEO Marc Benioff attends a World Economic Forum panel discussion in Davos, Switzerland, January 18, 2024.
Stefan Warmus | Bloomberg | Getty Images
sales force Shares of the cloud software provider plunged 17% in after-hours trading on Wednesday after the cloud software provider reported lower-than-expected revenue and issued guidance that fell short of Wall Street expectations.
Here’s how the company performed compared to the London Stock Exchange Group consensus:
- income: Adjusted $2.44 per share, expected $2.38 per share
- income: US$9.13 billion, expected US$9.17 billion
Salesforce expects adjusted earnings per share for the quarter of $2.34 to $2.36 on revenue of $9.2 billion to $9.25 billion. Analysts surveyed by LSEG had expected adjusted earnings of $2.40 per share on revenue of $9.37 billion.
Salesforce said in the report that revenue in the first fiscal quarter ended April 30 increased 11% from US$8.25 billion in the same period last year. statement. This is the first time in more than five years that Salesforce has experienced a revenue shortfall.
All five of Salesforce’s product categories contributed to growth. But revenue in the professional services and other categories was $548 million, down 9% and below StreetAccount’s forecast of $572.9 million.
Net income jumped to $1.53 billion, or $1.56 a share, from $199 million, or 20 cents a share, a year ago.
Salesforce raised its profit forecast for fiscal 2025. The company now expects adjusted earnings per share of $9.86 to $9.94, compared with $9.68 to $9.76 three months ago. Its revenue guidance remains at $37.7 billion to $38 billion. Analysts polled by London Stock Exchange Group (LSEG) expected adjusted earnings of $9.76 per share on revenue of $38.08 billion.
This quarter, Salesforce began selling its Einstein co-pilot Assistant Sales and Customer Service Representative. The company also explain All paid Slack customers have access to AI features such as conversation summaries and daily recaps.
Before after-hours action, Salesforce shares were up 3.5% year to date, lagging the S&P 500, which has gained about 11% in the same period.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.
watch: Salesforce makes a bigger bet on artificial intelligence
About The Author
