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

Salesforce
shares
initially
slid
as
much
as
6%
but
then
went
up
1%
in
extended
trading
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,
formerly
known
as
Refinitiv:

• 
  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
Jan.
31,
according
to
a

statement.
Professional
services
revenue
declined
9%.
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.

“Over
the
past
two
quarters,
I’m
happy
to
say
we’ve
seen
improved
bookings
growth,”
Amy
Weaver,
Salesforce’s
finance
chief,
said
on
a
conference
call
with
analysts.

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.

The
full-year
guidance
takes
into
consideration
foreign-exchange
pressure
and
continued
weakness
in
professional
services,
Weaver
said.
Plus,
it
reflects
a
more
measured
buying
environment,
which
first
appeared
in
the
2023
fiscal
year,
she
said.

While
demand
for
artificial
intelligence
products
is
heavy,
the
guidance
doesn’t
factor
in
much
effect
from
that
category,
said
Brian
Millham,
Salesforce’s
president
and
chief
operating
officer.
A
price
increase
announced
last
year
won’t
be
a
major
factor
either,
Millham
said.

Adoption
of
AI
internally
should
contribute
to
margin
expansion
over
time,
he
said.

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

Salesforce’s
dividend
is
payable
as
of
April
11
to
shareholders
at
the
close
of
business
on
March
14.

WATCH:

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CEO:
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