Salesforce, the leading business software company, reported a slip in its shares after issuing a modest revenue forecast for the new fiscal year. The company’s results for the fiscal fourth quarter surpassed estimates, but its fiscal 2025 revenue guidance fell short, causing a 6% decline in extended trading on Wednesday.
The company’s earnings per share stood at $2.29, adjusted, exceeding the expected $2.26, while its revenue reached $9.29 billion, surpassing the anticipated $9.22 billion. Notably, Salesforce’s revenue grew by 10.8% year over year in the quarter, ending on Jan. 31, with professional services revenue experiencing a 9% decline. The company reported a net income of $1.45 billion, or $1.47 per share, compared to a loss of $98 million, or 10 cents per share.
During the quarter, Salesforce announced its acquisition of sales commission software startup Spiff and commenced selling its products on the Amazon Web Services marketplace. Additionally, the company called for adjusted fiscal first-quarter earnings of $2.37 to $2.39 per share, with revenue expected to range between $9.12 billion and $9.17 billion, surpassing analysts’ expectations of $2.20 in adjusted earnings per share on $9.15 billion in revenue.
Looking ahead to the new 2025 fiscal year, Salesforce anticipates adjusted earnings of $9.68 to $9.76 per share and $37.7 billion to $38.0 billion in revenue, implying 8.6% growth at the middle of the range. This fell short of analysts’ expectations of $9.57 per share and $38.62 billion in revenue.
Excluding the after-hours move, Salesforce shares have risen about 14% so far this year, outperforming the S&P 500 index, which has gained 6% over the same period. Executives are set to discuss the results with analysts on a conference call starting at 5 p.m. ET.
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