On Wednesday (November 30, 2022), Salesforce released financial results that exceeded analyst estimates. Bret Taylor, the co-CEO, also made his resignation known. Marc Benioff, the CEO and co-founder of Salesforce, will be the only person in command of the business.
Salesforce stock fell over 6% in extended trading.
Here’s how the company did versus Refinitiv consensus estimates for the quarter ending in October:
- EPS: $1.40, adjusted, versus $1.21 expected by analysts
- Revenue: $7.84 billion versus $7.82 billion expected by analysts
Salesforce stated that it anticipated revenue for the company’s fourth fiscal quarter to be between $7.9 billion and $8.03 billion, which is less than the analyst consensus of $8.02 billion. The business also disclosed that the impact of foreign exchange rates would reduce sales by $900 million.
Salesforce’s total revenue increased 14% year-over-year. Salesforce cut its year-end revenue and earnings forecasts in the previous quarter, citing a worse economic cycle. On Wednesday, it maintained those projections.
According to Salesforce, its operating cash flow for the quarter was $313 million, a 23% year-over-year decline.
The majority of the company’s revenues, or subscription and support revenue, which includes its flagship Sales Cloud software, came in at $7.23 billion, an increase of 13% over the previous year.
The Platform and Other category that includes Slack reported $1.51 billion in sales, an 18% increase year-over-year.
Salesforce spent $1.7 billion on share repurchases during the quarter, the company said.