Salesforce The company’s shares plunged as much as 17% in after-hours trading on Wednesday after the cloud software vendor reported weaker-than-expected revenue and gave an earnings outlook that fell short of Wall Street expectations.
Here’s how the company performed compared to the LSEG consensus:
- Revenue: Adjusted earnings per share: $2.44 (expected: $2.38 per share)
- Revenue: $9.13 billion (forecast: $9.17 billion)
Salesforce now expects adjusted earnings per share of $2.34 to $2.36 on revenue of $9.2 billion to $9.25 billion for the current quarter. Analysts surveyed by LSEG were expecting adjusted earnings per share of $2.40 on revenue of $9.37 billion.
Salesforce said its revenue for the first quarter ended April 30 increased 11% from $8.25 billion in the same period last year. statementThis is the first time since 2006 that Salesforce has posted a revenue decline, according to LSEG data.
All five of Salesforce’s product areas contributed to growth, but revenue from the professional services and other category was $548 million, down 9% and below the StreetAccount consensus of $572.9 million.
Net income jumped to $1.53 billion, or $1.56 a share, from $199 million, or 20 cents a share, a year earlier.
Salesforce raised its profit forecast for fiscal 2025. The company now expects adjusted earnings of $9.86 to $9.94 per share, down from $9.68 to $9.76 three months ago. Revenue guidance remains at $37.7 billion to $38 billion. Analysts surveyed by LSEG had expected adjusted earnings of $9.76 per share and revenue of $38.08 billion.
During the quarter, Salesforce Co-pilot Einstein Assistant sales and customer service representatives. The company also Said All paying Slack customers now have access to artificial intelligence features like conversation summaries and daily recaps.
As of after-hours trading, Salesforce shares had risen 3.5% so far this year, underperforming the S&P 500 index, which has risen about 11% over the same period. A sharp drop on Thursday would mark Salesforce’s worst day of share price declines since the 2008 financial crisis.
Executives will discuss the results with analysts on a conference call beginning at 5:00 p.m. ET.
—CNBC’s Robert Hamm contributed to this report.
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