Salesforce beats Q4 earnings expectations, but investors frown at its Q1 outlook

Salesforce beats Q4 earnings expectations, but investors frown at its Q1 outlook

 

Salesforce’s headquarters in San Francisco. (GeekWire Photo / Todd Bishop)




Salesforce vowed to double its yearly revenue by the end of its 2023 fiscal year and reported fourth-quarter earnings better than expected on Monday, but investors dinged the company for a lighter-than-expected outlook.

Fourth-quarter revenue at Salesforce was $3.6 billion, up 26 percent compared to the same period last year and slightly ahead of analyst expectations of $3.56 billion. Full-year revenue was $13.3 billion, which was also a 26 percent improvement over the prior year, and both numbers set company records.

In a press release unveiling the numbers, Salesforce co-CEO Keith Block said Salesforce now expects to record between $26 billion and $28 billion during its 2023 fiscal year, which will end four years from today, or thereabouts. One of the first companies to prove that software-as-a-service was the future of enterprise software after it was founded in 1999, Salesforce said it was the fastest company in that category to reach $13 billion in annual revenue.

Net income for the quarter was $362 million, up 75 percent compared to the same period last year. That translated into earnings per share of $0.70 excluding special items, well ahead of analyst estimates of $0.55.

But Salesforce shares fell three percent in after-hours trading thanks to a full-year revenue outlook that was below analyst models, according to Marketwatch.




Sales Cloud continues to pace the company’s revenue, as customers spent $4 billion on Salesforce’s flagship sales-management software during its fiscal 2019. Service Cloud posted a 25 percent jump in yearly revenue to $3.6 billion, while Salesforce Platform recorded a 49 percent jump in revenue during the year to $2.9 billion.

Source: GeekWire

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