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 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. The company’s net income increased to $1.27 billion or $1.28 a share from $68.8 million or 7 cents a share in the previous quarter. She said that the company experienced softness during the quarter in the U.S. and across several industries, including technology, retail, and consumer goods. She said that clients have become more cautious since July 2022. 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 expansion 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. Salesforce has raised its full-year forecast. It now expects to earn $8.04 to $10.806 per share, on revenue of $34.7 billion to $35.8 billion. This represents an 11% increase in revenue. Refinitiv surveyed analysts who expected $7.45 in profit per share and $34.65 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.
Neither AI nor a recent price hike will have a major impact on the full-year guidance, Weaver said.
Salesforce shares have climbed 62% so far this year, while the S&P 500 index has gained about 18% over the same stretch.
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