CRM - Salesforce Q1 revenue jumps 11%: stock is still taking a hit
2024-05-29 16:12:56 ET
Salesforce Inc (NYSE: CRM) is slipping in extended trading on Wednesday even though it reported better-than-expected EPS for its first financial quarter.
Salesforce stock down on disappointing guidance
The stock is being hit also because the management failed to impress with its guidance. now forecasts its sales to fall between $9.20 billion and $9.25 billion on up to $2.36 a share of earnings.
Analysts, in comparison, were at $9.34 billion and $2.40 per share, respectively. Marc Benioff – the chief executive of Salesforce Inc said in a press release today:
We are at the beginning of a massive opportunity for our customers to connect with their customers in a whole new way with AI.
The New York listed firm ended Q1 with $26.4 billion of current remaining performance obligations – up 10%. Salesforce stock is still down about 20% versus its year-to-date high in early March.
Notable figures in Salesforce Q1 earnings release
- Earned $1.53 billion versus the year-ago $199 million
- Per-share earnings also improved from 20 cents to $1.56
- Adjusted EPS printed at $2.44 as per the earnings report
- Revenue jumped 11% year-over-year to $9.13 billion
- Consensus was $2.37 a share on $9.15 billion in revenue
Salesforce saw an annualised growth of 12% in its subscription and support revenue that helped offset a 9.0% decline in professional services revenue in the recently concluded quarter. CEO Benioff also said on Wednesday:
As the world’s #1 AI CRM, we’re incredibly well positioned to help companies realize the promise of AI over the next decade.
This is a developing story. Check back in a few minutes for more updates!
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