Salesforce CEO Mark Benioff.
Adam Jeffery | Cnbc
Shares of Salesforce rose 2% on Thursday after the cloud software maker reported fiscal first-quarter earnings that exceeded analysts’ expectations.
Here’s how the company did:
- Earnings: According to Refinitiv, $1.21 per share, adjusted, versus 88 cents per share expected by analysts.
- Revenue: According to Refinitiv, $ 5.96 billion, versus $ 5.89 billion, as expected by analysts.
The company said in a statement that revenue for the quarter ended April 30 increased by 23% year-on-year. Revenue grew 20% in the previous quarter.
The platform and other segments that include MuleSoft and Tableau products, currently Salesforce’s top segment for subscription and support revenue, contributed $ 1.75 billion in revenue, up 28%.
Salesforce’s core Sales Cloud product, which salespeople use to track business opportunities, delivered $1.39 billion in revenue, up 11%.
Salesforce acquired professional-services company Acumen Solutions in the quarter and announced voice features for its service cloud offering.
Regarding the guidance, Salesforce said it sees adjusted fiscal second-quarter earnings per share of $ 7.22 billion to $ 4.23 billion in revenue from 91 cents to 92 cents. Analysts polled by Refinitiv were looking for 86 cents in adjusted earnings per share and $ 6.15 billion in revenue.
Salesforce called for $ 3.79 to $ 3.81 in adjusted earnings per share for the entire 2022 fiscal year, with $ 25.9 billion to $ 26.0 billion in revenue. There was $3.43 in adjusted earnings per share and $25.76 billion in revenue among analysts surveyed by Refinitiv.
Despite the after-hours move, Salesforce stock is down less than 2% since the beginning of the year, while the S&P 500 index rose nearly 12% in the same period.
Analysts at Morgan Stanley upgraded their rating on Salesforce stock to equal buy to hold earlier this month. “While concerns over M&A’s hunger and sustainable margin expansion may persist, leading franchises do not remain cheap for long, especially amid strong demand backgrounds we see over the next several years,” he wrote.
The executive will discuss the results with analysts on a conference call starting at 5 pm Eastern time.
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