Salesforce co-founder and CEO Marc Benioff speaks during a panel session at the World Economic Forum in Davos, Switzerland, January 18, 2024.
Stefan Vermuth | Bloomberg | Getty Images
sales force The company’s stock price initially fell as much as 6%, but rose 1% in after-hours trading on Wednesday after the business software maker announced lower sales expectations for the new fiscal year. Dividend payments will start at 40 cents per share.
Here’s how LSEG (formerly Refinitiv) performed compared to expectations:
- Earnings per share: Adjusted $2.29 vs. expected $2.26
- Revenue: $9.29 billion vs. expected $9.22 billion
According to one study, Salesforce’s sales rose 10.8% year-over-year in the quarter that ended Jan. 31. statement. Professional services revenue decreased 9%. The company reported net income of $1.45 billion, or $1.47 per share, and a loss of $98 million, or 10 cents per share.
“We are pleased with the improvement in booking growth over the past two quarters,” Amy Weaver, Salesforce’s finance chief, said on a conference call with analysts.
Salesforce announced it will acquire a sales commission software startup during the quarter. Spiff The company had begun selling the product under undisclosed conditions. Amazon web service market.
Salesforce expected adjusted fiscal first-quarter earnings of $2.37 to $2.39 per share and revenue of $9.12 billion to $9.17 billion. Analysts surveyed by LSEG had expected adjusted earnings per share of $2.20 on revenue of $9.15 billion.
For the new fiscal year 2025, Salesforce said it expects adjusted earnings to be between $9.68 and $9.76 per share on revenue between $37.7 billion and $38 billion. The revenue numbers imply growth of 8.6% in the middle of the range. Analysts had expected earnings of $9.57 per share and revenue of $38.62 billion.
Weaver said the full-year outlook takes into account currency pressures and continued weakness in professional services. Additionally, he said this reflects a more cautious purchasing environment that first emerged in fiscal 2023.
Brian Milham, president and chief operating officer of Salesforce, said that while there is great demand for artificial intelligence products, the guidance does not take into account much of the impact from that category. Mr Milam said price increases announced last year were not likely to be a major factor.
Introducing AI internally should help increase profits over time, he said.
Excluding after-hours movements, Salesforce stock is up about 14% since the beginning of the year, while the S&P 500 is up 6% in the same period.
Salesforce’s dividend will be paid to current shareholders as of April 11th at the close of business on March 14th.
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