Marc Benioff, Chairman and Co-Chief Executive Officer of Salesforce.com Inc., speaks during the opening address of the DreamForce Conference 2019 in San Francisco on November 19, 2019. Salesforce.com Inc.’s annual software conference will be showcasing new products and software discussed its commitment to social causes, was interrupted for the second year in a row by protests against the company’s work with the US government.
David Paul Morris | Bloomberg | Getty Images
Salesforce stock fell slightly in expanded trading Thursday after the enterprise software company posted gains that exceeded analyst estimates.
This is how the company did it:
- Merits: Adjusted for $ 1.04 per share compared to 75 cents per share as analysts expected, Refinitiv said.
- Revenue: According to Refinitiv, $ 5.82 billion versus $ 5.68 billion as analysts expected.
The company recorded 20% year-over-year revenue growth in the fourth quarter of fiscal 2021, which ended Jan. 31, according to a statement. In the previous quarter, sales rose by 20%.
Salesforce generated $ 1.36 billion in subscription and support revenue for its flagship Sales Cloud product for tracking sales leads. This corresponds to an annualized growth of around 11% compared to 12% in the previous quarter. Salesforce has grown through acquisitions over the years, and Salesforce Tableau data visualization software, purchased in 2019, contributed $ 1.81 billion to Salesforce’s subscription and support revenues for platform and other products, which grew 26% and accelerated from 24% in the previous quarter.
In December, Salesforce announced that it was planning to acquire the team communications app company Slack for over $ 27 billion. Salesforce has announced that it will close the deal for the quarter ending July 31st. Also in the quarter, Salesforce announced Vaccine Cloud, a tool that government agencies and businesses can use to manage coronavirus vaccine delivery.
Salesforce currently had $ 18 billion in performance obligations remaining at the end of the quarter, up 20%. Analysts surveyed by FactSet had expected 16% growth, and the growth rate was 20% in the previous quarter.
Turning to the projections, Salesforce sees adjusted earnings per share of 88 to 89 cents for the first quarter of fiscal year on revenue of $ 5.875 billion to $ 5.885 billion. Analysts polled by Refinitiv had expected adjusted earnings of 76 cents per share on sales of $ 5.72 billion.
For the full fiscal year 2022, which would include impact from Slack, the company called for adjusted earnings per share of $ 3.39 to $ 3.41 on revenue of $ 25.65 to 25.75 billion in the first quarter of the fiscal year -Dollar. Analysts polled by Refinitiv had expected adjusted earnings per share of $ 3.49 and revenue of $ 25.42 billion.
Salesforce stocks are up 4% since early 2021, while the S&P 500 index is up about 2%.
Executives will hold a conference call with analysts starting at 5:00 p.m. Eastern time to discuss the findings.
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