The quarterly earnings of the company Salesforce (CRM) R3 2023
Salesforce co-founder and co-CEO Marc Benioff speaks at the grand opening of the Salesforce Tower, the tallest building in San Francisco, California, Tuesday, May 22, 2018.
Karl Mondon | Bay Area News Agency | Getty Images
Sales force reported earnings and revenue on Wednesday that beat analysts’ expectations. They also announced that co-head Bret Taylor is stepping down. Salesforce CEO and co-founder Marc Benioff will be the sole head of the company.
Salesforce stock fell more than 6% in extended trading.
Here’s how the company compared to Refinitiv’s consensus estimates for the quarter ended in October:
- EPS: $1.40, adjusted, versus $1.21 expected by analysts
- Revenue: $7.84 billion vs. $7.82 billion expected by analysts
Salesforce said it expected between $7.9 billion and $8.03 billion in revenue in the company’s fiscal fourth quarter, below the midpoint of analysts’ expectations of $8.02 billion in sales for the quarter season The company also said it would take a $900 million hit in sales due to the impact of foreign currency.
Salesforce’s total revenue increased 14% year over year. Last quarter, Salesforce cut its year-end estimates for both revenue and earnings, citing a weaker economic cycle. He confirmed those estimates on Wednesday.
Salesforce said its operating cash flow came in at $313 million for the quarter, down 23% year over year.
Subscription and support revenue, which includes the company’s flagship Sales Cloud software and accounts for the majority of the company’s sales, came in at $7.23 billion, which was up 13% year over year.
The platform and another division that includes Slack reported $1.51 billion in sales, an increase of 18% year over year.
Salesforce spent $1.7 billion on share repurchases in the quarter, the company said.