Salesforce beats on earnings but forecasts single-digit revenue growth for the year

Earnings

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Marc Benioff, co-founder and CEO of Salesforce, speaks on a panel session at the World Economic Forum in Davos, Switzerland, on Jan. 18, 2024.
Stefan Wermuth | Bloomberg | Getty Images

Salesforce shares slid as much as 6% in extended trading on Wednesday after the business software maker issued a light revenue forecast for the new fiscal year. It will start paying a dividend at 40 cents per share.

Here’s how the company did, compared with estimates from LSEG:

  • Earnings per share: $2.29, adjusted, vs. $2.26 expected
  • Revenue: $9.29 billion, vs. $9.22 billion expected

Salesforce’s revenue grew 10.8% year over year in the quarter, which ended on Jan. 31, according to a statement. The company reported net income of $1.45 billion, or $1.47 per share, compared with a loss of $98 million, or 10 cents per share.

During the quarter, Salesforce said it would acquire sales commission software startup Spiff for undisclosed terms and was starting to sell its products on the Amazon Web Services marketplace.

Salesforce called for adjusted fiscal first-quarter earnings of $2.37 to $2.39 per share, with $9.12 billion to $9.17 billion in revenue. Analysts polled by LSEG had been expecting $2.20 in adjusted earnings per share on $9.15 billion in revenue.

For the new 2025 fiscal year, Salesforce said it sees adjusted earnings of $9.68 to $9.76 per share and $37.7 billion to $38.0 billion in revenue. The revenue figure implies 8.6% growth at the middle of the range. Analysts had expected $9.57 per share, along with $38.62 billion in revenue.

Excluding the after-hours move, Salesforce shares have risen about 14% so far this year, while the S&P 500 index has gained 6% over 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.

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