Salesforce CEO Marc Benioff walks with other attendees as they leave a morning session at the Allen & Company Sun Valley Conference in Sun Valley, Idaho, on July 12, 2023.
Kevin Dietsch | Getty Images News | Getty Images
Salesforce shares jumped 6% in extended trading on Wednesday after the cloud software company announced quarterly results and guidance that surpassed Wall Street’s expectations.
Here’s how the company did:
- Earnings: $2.12 per share, adjusted, vs. $1.90 per share as expected by analysts, according to Refinitiv.
- Revenue: $8.60 billion, vs. $8.53 billion as expected by analysts, according to Refinitiv.
Salesforce’s revenue in the fiscal second quarter increased 11% from a year earlier, according to a statement. Net income rose to $1.27 billion, or $1.28 per share, from $68 million, or 7 cents per share, in the year-ago quarter.
For the current quarter, Salesforce called for $2.05 to $2.06 in adjusted earnings per share on $8.7 billion to $8.72 billion in revenue. Analysts polled by Refinitiv had expected adjusted earnings of $1.83 per share and $8.66 billion in sales.
The company delivered growth in all five of its product categories, and CEO Marc Benioff sees growth ahead through artificial intelligence.
“We’re leading our customers into the new AI era,” he was quoted as saying in a statement.
Salesforce lifted its full-year forecast. It now sees $8.04 to $8.06 in adjusted earnings per share on $34.7 billion to $34.8 billion in revenue, implying 11% revenue growth. Analysts surveyed by Refinitiv had been looking for $7.45 per share in profit and $34.65 billion in revenue. Three months ago, the company issued guidance of $7.41 to $7.43 in adjusted earnings per share and $34.5 billion to $34.7 billion in revenue, which would have meant 10% revenue growth.
During the quarter Salesforce said AI enhancements to its Sales Cloud and Service Cloud applications were available for $50 per person per month on top of existing costs. And it announced an AI Cloud that will encompass tools for marketing and data analysis.
Salesforce shares have climbed 62% so far this year, while the S&P 500 index has gained about 18% in the same period.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
This is breaking news. Please check back for updates.
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Source link: https://www.cnbc.com/2023/08/30/salesforce-shares-pop-on-earnings-beat-and-optimistic-forecast.html