Here’s how the company did it:
- Gains: $ 1.21 per share, adjusted, compared to 88 cents per share as expected by analysts, according to Refinitiv.
- Returned: $ 5.96 billion, compared to $ 5.89 billion as expected by analysts, according to Refinitiv.
Revenue increased 23% year-over-year in the fiscal first quarter, which ended April 30, the company said in a statement. In the previous quarter, turnover increased by 20%.
The Platform and Others segment which includes MuleSoft and Tableau products, currently Salesforce’s number one segment for subscription and support revenue, generated $ 1.75 billion in revenue, up 28%.
Salesforce’s Sales Cloud product, used by sales reps to track business opportunities, generated $ 1.39 billion in revenue, up 11%.
During the quarter, Salesforce acquired professional services company Acumen Solutions and announced voice capabilities for its Service Cloud offering. The company also said that more than 150 government agencies and healthcare organizations use its software to manage vaccine distribution.
As for the forecast, Salesforce said it sees 91 to 92 cents in adjusted second-quarter earnings per share on revenue of $ 6.22 billion to $ 6.23 billion. Analysts polled by Refinitiv were looking for 86 cents in adjusted earnings per share and $ 6.15 billion in revenue.
Salesforce reported adjusted earnings per share of $ 3.79 to $ 3.81 for full year 2022, with revenue of $ 25.9 billion to $ 26.0 billion, an increase of 22 %. The consensus among analysts polled by Refinitiv was $ 3.43 in adjusted earnings per share and $ 25.76 billion in revenue. Full-year expected adjusted operating margin widened to 18% from 17.7% as revenue guidance rose $ 250 million in the middle of the range.
Forecasts for the full year include a $ 500 million contribution to Slack team communication software application revenue, a $ 27.7 billion acquisition that is expected to close at the end of the quarter. which ends July 31. This expected contribution is $ 100 million lower than that of Salesforce. predicted in February, as the company updated its forecast on the end of the transaction.
Despite the after-hours move, Salesforce stock is up less than 2% year-to-date, while the S&P 500 index has risen nearly 12% in the same time frame.
Morgan Stanley analysts raised their rating on Salesforce stock to buy equivalent to hold equivalent earlier this month. “While concerns about the appetite for mergers and acquisitions and sustainable expansion of margins may persist, major franchises do not stay cheap for long, especially in the context of strong demand we anticipate over the next few years. They wrote.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. EST.
This is the latest news. Please come back for updates.
LOOK: Jim Cramer on Nvidia, Salesforce and Williams-Sonoma