Marc Benioff, Salesforce co-founder and CEO, speaks at the World Economic Forum in Davos, Switzerland, on January 18, 2023.
Stefan Wermuth | Bloomberg | beautiful pictures
Sales force shares rose 14% in extended trading on Wednesday after the cloud software maker beat Wall Street profit estimates and issued a better-than-expected forecast.
Here’s how the company did it:
- income: According to Refinitiv, $1.68 per share, adjusted, compared with $1.36 per share as analysts expected.
- Revenue: $8.38 billion, compared with $7.99 billion as analysts expected, according to Refinitiv.
Salesforce’s revenue grew 14% year-over-year in the quarter ended January 31, according to a report. declare. The company reported a loss of $98 million, compared with a loss of $28 million in the previous quarter.
Profitability has become a higher priority at Salesforce, which in recent months has been pressured by flow of active investors, including Third Point, Elliott Management, and Starboard Value. Company announced the addition of ValueAct Capital CEO Mason Morfit to its board.
In January, Marc Benioff, co-founder and CEO of Salesforce, said the company would sale 10% its workforce, representing more than 7,000 people. At the end of the quarter, Bret Taylor, who ran Salesforce as co-CEO alongside Benioff, step down.
For the first fiscal quarter, the company forecasts adjusted earnings between $1.60 and $1.61 per share and revenue between $8.16 billion and $8.18 billion. Analysts surveyed by Refinitiv looked for $1.32 in adjusted earnings per share and $8.05 billion in revenue.
Salesforce saw adjusted earnings per share for the full year of $7.12 to $7.14 and revenue of $34.5 billion to $34.7 billion. Analysts polled by Refinitiv had expected adjusted earnings per share of $5.84 and revenue of $34.03 billion.
The company said it was expanding its share buyback program to $20 billion after announcing its first buyback commitment, with up to $10 billion allocated for that purpose. in August.
Salesforce’s stock is up 26% year-to-date, excluding Wednesday’s after-hours volatility, outpacing the S&P 500 index, which has gained 3% in the same period.
Executives will discuss the results with analysts in a conference call that begins at 5 p.m. ET.
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