Salesforce Co-CEO Marc Benioff speaks at the grand opening of the Salesforce Tower in San Francisco in May 2018.
David Paul Morris | Bloomberg | Getty Images
Salesforce shares fell up 4% in extended transactions on Thursday after the software company posted earnings that exceeded analysts’ estimates, but Salesforce failed to predict year-over-year earnings because they influence the communication implications of the Slack app purchasing team. .
Here’s how the company did it:
- Earnings: $ 1.04 per share, adjusted, from 75 cents per share, as expected by analysts, according to Refinitiv.
- Income: $ 5.82 billion, compared to $ 5.68 billion, as expected from analysts, according to Refinitiv.
The company reported a 20% year-over-year increase in revenue in the fourth quarter of the company’s fiscal year 2021, which ended Jan. 31, according to a statement. In the previous quarter, revenues increased by 20%.
While the revenue guidelines for the full fiscal year 2022 exceeded estimates, the revenue guidelines were light.
For the full year, which would include the impact of Slack, the company requested adjusted revenue of $ 3.39 to $ 3.41 per share, with revenue of $ 25.65 billion to $ 25.75 billion. This includes Slack’s $ 600 million in revenue. Analysts surveyed by Refinitiv anticipated $ 3.49 in adjusted earnings per share and $ 25.42 billion in revenue.
Salesforce sees adjusted earnings per share of 88 cents to 89 cents in the first fiscal quarter with revenue of $ 5.875 billion to $ 5.885 billion. Analysts surveyed by Refinitiv expected adjusted earnings of 76 cents per share, with revenues of $ 5.72 billion.
In the fourth fiscal quarter, Salesforce generated $ 1.36 billion in subscription revenue and supports revenue from its key sales product Cloud to track potential customers, which translates to an annual increase of approximately 11% compared to 12% in the previous quarter. The acquisitions have helped Salesforce expand over the years, and Tableau data visualization software, Salesforce purchased in 2019, has contributed to Salesforce’s subscription and support revenue from Platform and other Salesforce products in growth of 26% and accelerating from 24% in the previous quarter.
In December, Salesforce said it plans to buy Slack for more than $ 27 billion. Salesforce said it expects to conclude the deal by the end of the quarter, which ends on July 31. Salesforce also announced Vaccine Cloud in the same quarter, a tool that government agencies and companies can use to manage the implementation of coronavirus vaccines.
Salesforce had $ 18 billion in outstanding performance bonds remaining at the end of the quarter, up 20%. Analysts surveyed by FactSet expected a 16% increase, and the growth rate was 20% in the previous quarter.
Salesforce shares have risen 4% since early 2021, while the S&P 500 has risen about 2%.
The directors will hold a conference call with analysts to discuss the results starting at 5:00 p.m., Eastern Time.
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