2 min Applications

Salesforce reports another blockbuster quarter

Salesforce reports another blockbuster quarter

The company saw its shares surge during after-hours trading following the news. Salesforce’s latest earnings report showed earnings before costs of $1.68 per share, up from 84 cents during the same quarter last year, surpassing analysts’ estimated adjusted earnings per share of $1.36 on revenue of $7.99 billion.

The San Francisco-based firm reported revenue of $8.38 billion, up 14% year-over-year, with subscription revenue increasing by 14% to $7.79 billion and professional services and other revenues rising 19% to $600 million.

Salesforce’s adjusted operating margin stood at 29.2%, while cash flow generated from operations was $2.79 billion, up 41%. The remaining performance obligations at the end of the quarter stood at $48.6 billion, up 11%.

Revenue 18 percent up YoY

For fiscal 2023, Salesforce had adjusted earnings per share of $5.24 on revenue of $31.35 billion. The numbers represent an 18% year-over-year increase. “We delivered $31.4 billion in revenue, up 18% year-over-year, or 22% in constant currency, one of the best performances of any enterprise software company our size,” said Salesforce’s Chairman and CEO, Marc Benioff.

In addition to its earnings, Salesforce announced a new $20 billion stock repurchase program. The program was initially launched in 2022 with a $10 billion commitment, but the company has upped the ante amid the emergence of activist investors, most notably Elliott Management.

Elliott Management reportedly made a multibillion-dollar investment in Salesforce in January and has nominated a slate of directors for the company’s board. Jesse Cohn, who runs the activist practice at Elliott, is believed to be among them, with nominations for the Salesforce board closing on March 14.

What Salesforce expects for 2024

For fiscal 2024, Salesforce expects adjusted earnings of $1.60 to $1.61 a share on revenue of $8.16 billion and $8.18 billion. Salesforce also surprised with a full-year EPS outlook of $7.12 to $7.15 on revenue of $34.5 billion to $34.7 billion, higher than expected.

Despite the global economic slowdown affecting several companies during the reporting season, Salesforce stands out with its strong financials and optimistic outlook.

The company’s solid performance has captured investor attention, with shares increasing over 15% after the bell. It’s clear that Salesforce is well-positioned for continued success, and investors eagerly anticipate what’s to come.

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