Salesforce shares plunge 17% on revenue miss, weak forecast
Is Salesforce's Growth Era Over?
Salesforce's shares fell by 17% after hours as the company missed revenue expectations and provided a weaker forecast than anticipated. The company reported an 11% year-over-year revenue increase, which fell short of analyst estimates for the first time in over five years. Despite a significant rise in net income, Salesforce's guidance for future earnings and revenue was below Wall Street predictions.
How much did Salesforce's revenue grow in the fiscal first quarter, and how does this compare to the previous year?
In the fiscal first quarter, Salesforce's revenue grew by 11% from the previous year. The revenue for this quarter was $9.13 billion, compared to $8.25 billion a year earlier.
What revenue and earnings guidance did Salesforce provide for the current quarter, and how does this compare to analyst expectations?
Salesforce provided guidance for adjusted earnings per share in the current quarter to be between $2.34 and $2.36, with revenue expectations ranging from $9.2 billion to $9.25 billion. However, this guidance fell short of analyst expectations surveyed by LSEG, who had anticipated adjusted earnings per share of $2.40 and revenue of $9.37 billion. This discrepancy between Salesforce's forecasts and analyst expectations contributed to a significant drop in the company's share price in extended trading.