Salesforce Shares Rise 7% in Extended Trading After Strong Fiscal Third Quarter Results
At the Asia-Pacific Economic Cooperation (APEC) Leaders’ Week in San Francisco, Salesforce CEO Marc Benioff participated in a discussion about AI and the future. This was followed by an announcement that Salesforce shares increased by 7% in extended trading on Wednesday due to the cloud software vendor’s strong fiscal third-quarter earnings report. The company’s successful performance surpassed analysts’ estimates.
The fiscal third-quarter results were as follows:
– Earnings: $2.11 per share, adjusted, versus the $2.06 per share expected by LSEG
– Revenue: $8.72 billion versus the $8.72 billion expected by LSEG
This represents an 11% increase in revenue from $7.84 billion a year ago. Despite a recent decline in growth rates due to economic uncertainties and high interest rates, Salesforce’s stock has outperformed the Nasdaq, rising by more than 70% this year.
The company has managed to increase profits by lowering expenses after implementing a restructuring plan which involved cutting 10% of jobs and reducing office space.
Salesforce has raised its fiscal 2024 forecast for operating cash flow growth to 33% and expects revenue for the fiscal fourth quarter to increase between $9.18 billion and $9.23 billion.
Salesforce CEO Marc Benioff stated, “We had another strong quarter of executing on our profitable growth plan we set in motion last year, delivering $8.7 billion in revenue and again raising our operating margin guidance for this fiscal year.”
The company’s biggest unit, providing customer support, saw a 12% increase in revenue to $2.07 billion. Revenue in the sales software segment grew by 12% to $1.9 billion. Additionally, the platform and other revenue, which includes Slack, increased by 11% to $1.69 billion.
Following the earnings report, Salesforce shares rose to $246.50, approximately 20% below their record high from two years ago.
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