Salesforce Surpassed Analysts Expectations Tuesday in Fourth-Quarter Earnings
Mar 2, 2022 By MarketDepth
Salesforce (NYSE: CRM) surpassed analysts’ expectations Tuesday for both profit and revenue in its fourth-quarter earnings report. The stock rose over 3% during extended trading upon the news.
Higher than Expectations
The American cloud-based software company reported earnings of USD0.84 per share, compared to the expected USD0.74 a share. Revenue amounted to USD7.33 Billion, higher than analysts anticipated USD7.24 Billion, according to Refinitiv.
“We had another phenomenal quarter and full-year of financial results. As we continue to see tremendous demand from customers, we’re raising our FY23 revenue guidance to $32.1 billion at the high-end of range, with non-GAAP operating margin of 20%, and operating cash flow growth of 22% year-over-year.”Marc Benioff, Chair and Co-CEO of Salesforce
Furthermore, the company now expects first quarter revenue to land between USD7.37 Billion and USD7.38 Billion. Analysts had initially been looking for USD7.26 Billion in revenue.
According to Benioff, enterprise software stocks have undergone a “precipitous fall.”
“We’ve seen it happen many times over the last 20, 30 years. It’s not unprecedented, but it does happen.”Marc Benioff, Chair and Co-CEO of Salesforce
The company now expects to make USD1.5 Billion in sales from Slack, an app it purchased in 2020, during fiscal 2023. Nevertheless, Salesforce stock has tumbled 15% throughout this year and has a current market cap of USD205.70 Billion.