Connect with us


Salesforce beats earnings estimates but reports slowing revenue and weak forecast

Despite the beat, Salesforce shares moved lower as the acquisition of work communication app Slack had an immediate impact….



Marc Benioff of the United States, Chairman and CEO of, delivers a speech at the World Economic Forum in Davos, Switzerland, on January 22, 2020.

Fabrice Coffrini | AFP | Getty Images

Salesforce shares moved 4% lower in extended trading on Tuesday after the enterprise software maker reported fiscal third-quarter earnings that exceeded analysts’ expectations but disclosed soft quarterly earnings guidance.

Here’s how the company did:

  • Earnings: $1.15 cents per share, adjusted, vs. 75 cents per share as expected by analysts, according to Refinitiv.
  • Revenue: $5.42 billion, vs. $5.25 billion as expected by analysts, according to Refinitiv.

Salesforce also announced its intent to acquire work communication app Slack at an enterprise value of $27.7 billion.

Revenue grew 20% in the quarter ended Oct. 31, according to a statement, compared with 29% in the prior quarter.

As the coronavirus pandemic continued, Salesforce opted to consolidate and sublease some of its locations, Hawkins said during a conference call with analysts. The changes will result in a one-time charge of $80 million to $100 million in the fiscal fourth quarter.

With respect to guidance, Salesforce said it sees fiscal fourth-quarter adjusted earnings of 73 cents to 74 cents per share on $5.665 billion to $5.675 billion in revenue. Analysts surveyed by Refinitiv had expected 86 cents in adjusted earnings per share and $5.52 billion in revenue.

In the fiscal third quarter Salesforce’s core Sales Cloud product for keeping track of current and potential customers delivered $1.3 billion in revenue, up 12% year over year. Service Cloud, for handling customer service, generated $1.4 billion in revenue, up 21%. Salesforce’s Platform and Other category, which includes the Tableau data visualization software Salesforce acquired last year, came up with $1.6 billion, a 24% gain.

Salesforce became one of the 30 companies in the Dow Jones Industrial Average in the quarter. Salesforce announced for Schools, a tool to help educators with decisions about when to return to classrooms, along with Salesforce Meetings software that provides sales-related information to salespeople who participate in video calls.

Salesforce issued revenue guidance for the full 2022 fiscal year that was stronger than expected. The company called for $25.45 billion to $25.55 billion in revenue, which includes a $600 million contribution from Slack, assuming it closes in the late second quarter. The forecast implies 20.8% annualized growth over Salesforce’s fiscal year 2021 guidance. Analysts polled by Refinitiv had been looking for $24.50 billion in revenue.

“We feel very good about our ability to succeed,” Marc Benioff, Salesforce CEO Marc Benioff said on the call.

Mark Hawkins, Salesforce’s chief financial officer, who joined in 2014 from Autodesk, where he had been that company’s finance chief, will retire on Jan. 31. Amy Weaver, Salesforce’s president and chief legal officer, will be Hawkins’ successor.

Excluding the after-hours move, Salesforce stock is up about 49% since the start of the year, compared with 13% growth in the S&P 500 index over the same period.




Techcrunch6 days ago

South Korean antitrust regulator fines Google $177M for abusing market dominance – TechCrunch

The Korea Fair Trade Commission (KFTC) said on Tuesday it fined Google $177 million for abusing its market dominance in...

Cointelegraph1 week ago

El Salvador’s Bitcoin detractors: Opposition groups gather as crypto law rolls out

While President Bukele enjoys widespread popularity, his law that makes Bitcoin legal tender does not.

Ventureburn1 week ago

Startup partners with Telkom to launch translation platform for SA languages

Telkom has partnered with SA startup Enlabeler to launch an AI platform that translates speech into text and provides transcription...

Entrepreneur2 weeks ago

Why You Should Make Twitter Spaces Part of Your Business Strategy

Twitter's latest feature can help businesses grow their presence on the platform.

Bioengineer2 weeks ago

What factors put Philippine birds at risk of extinction?

Credit: Ça?an ?ekercio?lu The lush forests and more than 7,000 islands of the Philippines hold a rich diversity of life,

Reuters3 weeks ago

Chinese social media platforms to “rectify” financial self-media accounts

China's top social media platforms, Wechat, Douyin, Sina Weibo and Kuaishou, said on Saturday they would begin to rectify irregular...

Ventureburn3 weeks ago

South African startups helping to solve the global challenges

A new generation of entrepreneurs are not only incubating solid startups but are contributing to help solve some of the...

Techcrunch4 weeks ago

The SEC and the DOJ just charged this startup founder with fraud, saying he lied to Tiger and others – TechCrunch

Today, both the U.S. Department of Justice and the Securities and Exchange Commission charged Manish Lachwani, cofounder of a mobile...

Techcrunch4 weeks ago

Blockchain startup XREX gets $17M to make cross-border trade faster – TechCrunch

A substantial portion of the world’s trade is done in United States dollars, creating problems for businesses in countries with a...

ZDNET1 month ago

National Australia Bank keeping staff connected with Google Pixel rollout

More than 2,000 Google Pixel devices were issued to NAB's customer contact teams to enable them to support customers remotely.


    Select language